All eyes are on whether the pound, now at its weakest, has the strength to rebound

All eyes are on whether the pound, now at its weakest, has the strength to rebound

08.04.2025

In the previous day’s U.S. currency trading, the U.S. dollar saw a seesaw movement against the euro. The EUR/USD pair traded between 1.0882 and 1.1049, with price action fluctuating around the 20-period moving average on the hourly chart. While the 4-hour chart is entering a contracting triangle pattern with both the upper and lower boundaries narrowing, the daily chart continues to show an intact uptrend above the 10-period moving average.

Among European currencies, the pound was the weakest during U.S. trading hours. GBP/USD fell from 1.2933 to 1.2710. A downtrend was observed along the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has closed below the 200-SMA line, which had appeared to be acting as support, and on the daily chart, the RSI has plummeted from 70 to 40. We will need to monitor price action during U.S. trading hours to see if the pound’s momentum continues to weaken.

Today’s economic indicators include Japan’s Balance of Payments at 8:50, Australia’s Westpac Consumer Confidence Index at 9:30, Australia’s NAB Business Conditions Survey at 10:30, Japan’s Economic Watchers Survey at 14:00, France’sFrance’s trade balance and current account balance at 15:45, the U.S. NFIB Small Business Optimism Index at 19:00, Canada’s Ivey PMI at 23:00, remarks by BOE Deputy Governor Lombardelli at 25:00, and a U.S. 3-year Treasury auction at 26:00. We will be watching for any potential rebound in the pound, which has fallen to its weakest level.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed