All eyes are on whether the weakening pound will recover during U.S. trading hours

All eyes are on whether the weakening pound will recover during U.S. trading hours

01.07.2025

In yesterday’s U.S. trading session, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 105.231 to 105.936. It recovered from the -2σ to the +2σ levels on the hourly Bollinger Bands. On the 4-hour chart, the 200-period EMA is acting as a support level, and the pair is trending higher. On the daily chart, the pair is currently searching for direction just below the 20-period MA, so we should watch for any shifts in strength during today’s U.S. trading session.

Among European currencies, the pound weakened from European trading hours into U.S. trading hours. The GBP/JPY pair fell as the EUR/JPY rose, dropping from 198.447 to 197.214. On the 4-hour chart, the price has rebounded from the +2σ to the -2σ Bollinger Bands, and the daily chart shows a similar price movement. We should watch to see if the decline continues during today’s European trading hours.

Today’s schedule includes New Zealand housing permits at 7:45, the Bank of Japan’s Tankan survey at 8:50, Japan’s Consumer Sentiment Index at 14:00, the UK’s Nationwide House Price Index at 15:00, Germany’s employment statistics and Manufacturing PMI at 16:55, the Eurozone Manufacturing PMI at 17:00, and the UK’sManufacturing PMI, at 6:00 PM: Eurozone Manufacturing PMI, at 10:30 PM: Remarks by ECB President Lagarde, remarks by BOJ Governor Ueda, and remarks by Fed Chair Powell, at 10:45 PM: U.S. PMI Purchasing Managers’ Index, at 11:00 PM: U.S. ISM Manufacturing Index, U.S. JOLTS Job Openings, and U.S. Construction Spending.We will be watching to see if the weak pound recovers during U.S. trading hours.

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