Attention Turns to the Potential for a Rebound in the Pound-Dollar Exchange Rate After Further Declines

Attention Turns to the Potential for a Rebound in the Pound-Dollar Exchange Rate After Further Declines

15.07.2025

In yesterday’s U.S. trading session, the U.S. dollar saw a seesaw battle against the euro. The EUR/USD pair traded between 1.1654 and 1.1697, remaining within the range of the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is facing resistance at the 20-period MA, while on the daily chart, it is currently attempting to break below the 20-period MA support line.We will need to watch for any directional movement today during U.S. trading hours, as strength and weakness may remain in a stalemate.

Among European currencies, the pound continued to decline against the U.S. dollar. The GBP/USD pair fell from 1.3503 to 1.3424. The decline occurred as the pair encountered resistance at the 20-period moving average on the hourly chart. On the 4-hour chart, the pair is moving along the -2σ line of the Bollinger Bands, and on the daily chart, it has nearly offset the sharp rally seen in the latter half of last month.

Today’s economic indicators include the UK BRC same-store sales at 8:01, the Australian Westpac Consumer Confidence Index at 9:30, the German ZEW Economic Sentiment Index and the Eurozone ZEW Economic Sentiment Index at 18:00, andIndustrial Production, at 9:30 PM: Canada’s Manufacturing Sales and the U.S. Consumer Price Index, the U.S. NY Fed Manufacturing Index, and Canada’s Consumer Price Index, at 10:00 PM: Canada’s Existing Home Sales, at 1:45 AM: Remarks by U.S. Federal Reserve Chairman Barr, and at 2:00 AM: Remarks by U.S. Richmond Fed President Barkin.We will cautiously monitor the potential for a recovery in the GBP/USD pair, which has continued to decline.