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 gain ground, with its upside capped by the 200-period SMA on the hourly chart. On the 4-hour chart, price action remained within the range of the 20-period 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 pound/yen pair rose while other yen crosses fell.It rose from 186.569 to 189.191. On the 4-hour chart, the candlesticks have recovered from trading below the 20-period moving average to above it, and on the daily chart, the pair has rebounded from the -2σ level of the Bollinger Bands. We will be watching price action during European trading hours to see if the pound’s momentum continues.
Today’s economic indicators include the UK BRC same-store sales at 8:01, the release of the RBA minutes at 10:30, the UK employment report at 15:00, the German ZEW Economic Sentiment Index and the Eurozone ZEW Economic Sentiment Index at 18:00, and the EurozoneIndustrial Production, at 21:15: Canada’s Housing Starts, at 21:30: Canada’s Manufacturing Sales, the U.S. NY Fed Manufacturing Index, Canada’s Consumer Price Index, and the U.S. Import Price Index, and at 22:00: Canada’s Existing Home Sales.We will carefully monitor the upside potential of the pound, which has been rising.
Author: Keisuke Sakurai
