All eyes are on whether the weakening pound will recover during U.S. trading hours
01.07.2025
- European Manufacturing PMI
- U.S. ISM Manufacturing Index
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 EMA is acting as a support level, and the pair is trending higher. On the daily chart, the pair is currently hovering just below the 20 MA, searching for direction, 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 the 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 the US PMI Purchasing Managers’ Index, at 11:00 PM the US ISM Manufacturing Index, US JOLTS Job Openings, and US Construction Spending.We will be watching to see if the pound, which has been weakening, recovers during U.S. trading hours.
Author: Keisuke Sakurai
