Market participants may be waiting to see how much further the pound can rise against the U.S. dollar

Market participants may be waiting to see how much further the pound can rise against the U.S. dollar

12.05.2025

Last weekend, the U.S. dollar fell against the euro.The EUR/USD pair rebounded from 1.1197 to 1.1292. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the 200-period exponential moving average (EMA) is acting as a support level, and the candlesticks have reversed. On the daily chart, the pair is currently in the process of recovering after breaking below the 20-period MA, which had previously provided support. We will be watching price movements during European trading hours to see if the US dollar continues to weaken.

Among European currencies, the pound strengthened, much like the Japanese yen. The GBP/USD pair rebounded from 1.3212 to 1.3321. On the hourly chart, the price moved from the -2σ to the +3σ Bollinger Band. On the 4-hour chart, a return to the 20-period moving average (MA) is evident, while on the daily chart, the 20-MA is acting as support, with a rebound occurring just below it. We will be watching closely to see if the pound can maintain its momentum against the U.S. dollar.

Today’s economic indicators include Japan’s balance of payments at 8:50, the Japan Economic Watchers Survey at 14:00, remarks by BOE Deputy Governor Lombardelli at 17:00, andremarks by MPC member Green at 9:30 PM, remarks by MPC member Mann at 9:50 PM, remarks by Fed Governor Kuehler at 11:25 PM, remarks by MPC member Taylor at 1:00 AM, and U.S. Treasury data at 3:00 AM. We will cautiously monitor the upside potential for the pound, which has rebounded against the U.S. dollar.

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