Should we keep an eye on the upside potential of the rising pound?
15.04.2025
- Canada: Consumer Price Index
- U.S. New York Fed Manufacturing Index
In the U.S. currency market yesterday, the Canadian dollar fell against the yen after Canada’s February wholesale sales, released yesterday, came in lower than expected, dropping from 1.2% to 0.3% month-over-month. The CAD/JPY pair fell from 103.854 to 102.656.The pair struggled to rise, with its upside capped by the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, price action remained confined to the 20-period moving average (MA), while on the daily chart, the downtrend along the 75-period MA continues.
Among European currencies, the pound strengthened during U.S. trading hours, following the New Zealand dollar. The GBP/JPY pair rose while other yen crosses fell, climbing from 186.569 to 189.191. On the 4-hour chart, the candlesticks have recovered from trading below the 20-day moving average to above it, and on the daily chart, the pair has rebounded from the -2σ Bollinger Band. We will be watching price movements during European trading hours to see if the pound’s momentum continues.
Today’s economic indicators include UK BRC same-store sales at 8:01, the release of the RBA minutes at 10:30, UKEmployment Report at 15:00, the German and Eurozone ZEW Economic Sentiment Indexes and Eurozone Industrial Production at 18:00, Canadian Housing Starts at 21:15, Canadian Manufacturing Sales, the U.S. NY Fed Manufacturing Index, the Canadian Consumer Price Index, and the U.S. Import Price Index at 21:30, and Canadian Existing Home Sales at 22:00.We will closely monitor the upside potential of the pound, which has been rising.
Author: Keisuke Sakurai
