Will Market Participants Wait and See How Much the Weakened Pound Can Rebound?

Will Market Participants Wait and See How Much the Weakened Pound Can Rebound?

09.06.2025

In the U.S. currency markets last weekend, the Canadian dollar fell against the U.S. dollar after Canada’s May employment statistics, released on the 6th, showed that the unemployment rate had worsened to 7.0% from 6.9% the previous month.The USD/CAD pair rose from 1.3660 to 1.3704. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair rebounded from the -2σ level of the Bollinger Bands, and the daily chart showed a similar price movement to the 4-hour chart.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3584 to 1.3508. The price declined as it faced resistance at the 20-period moving average on the hourly chart.On the 4-hour chart, the candlesticks have fallen from the +3σ to the -2σ levels of the Bollinger Bands. On the daily chart, the price has been trading with support just below the 10-day moving average for approximately 10 business days. Additionally, on the daily chart, the candlesticks are showing divergence with the RSI.

Today’s economic indicators include New Zealand’s first-quarter manufacturing activity at 7:45, Japan’s real GDP and balance of payments at 8:50, Japan’s Economic Watchers Survey at 14:00, and U.S. wholesale inventories at 23:00.No other major economic releases or remarks by key officials are scheduled. We will carefully monitor the situation to see if the pound, which has been falling, has room to rebound during European trading hours.