All eyes are on whether the pound, now at its weakest, has the strength to rebound
08.04.2025
- Canada-Ivey Purchasing Managers' Index
- Japan's Balance of Payments
In yesterday's U.S. currency trading, the dollar traded in a seesaw pattern against the euro. The EUR/USD pair fluctuated between 1.0882 and 1.1049, with price action straddling the 20-period moving average on the hourly chart. While the 4-hour chart shows the pair entering a contracting triangle pattern with both the upper and lower boundaries narrowing, the daily chart indicates that the uptrend above the 10-period moving average remains intact.
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 on the hourly chart.On the 4-hour chart, the price has closed below the 200-period SMA, 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 movements during U.S. trading hours to see if the pound’s strength 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 Tankan Survey at 14:00, France’strade balance and current account balance at 15:45, the U.S. NFIB Small Business Optimism Index at 19:00, the Canadian 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.
Author: Keisuke Sakurai
