Should We Keep a Close Eye on the Sustainability of the Pound-Dollar Rebound?
17.07.2025
- U.S. Retail Sales
- UK Employment Statistics
In the U.S. currency market yesterday, the U.S. dollar fell against the euro after the U.S. June Producer Price Index (PPI), released yesterday, showed a year-over-year decline from 2.6% the previous month to 2.3%, with the core index—excluding food and energy—also falling.The EUR/USD pair rose from 1.1563 to 1.1721. Price action was seen moving across the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 200-period simple moving average (SMA) is acting as support, leading to a rebound, while on the daily chart, the pair is currently attempting to rebound after breaking below the 20-period MA.
Among European currencies, the pound rebounded against the U.S. dollar. The GBP/USD pair rose from 1.3365 to 1.3485. It rebounded from the -3σ to +3σ levels of the hourly Bollinger Bands. On the 4-hour chart, the RSI recovered from 21 to 38.On the daily chart, this marked the first rebound in five business days. However, as the pound has weakened again during today’s Asian session, traders should keep a close eye on price movements during the European session.
Today’s schedule includes Japan’s trade balance (customs-based) at 8:50, Japan’s foreign/inward securities investment; at 10:30, Australia’s employment statistics; at 15:00, the UK’s ILO unemployment rate and employment statistics; at 18:00, the Eurozone’s Consumer Price Index; at 21:30, the U.S. initial jobless claims, Canada’s international securities turnover, and U.S. retail sales;U.S. Import Price Index, and U.S. Initial Jobless Claims; at 22:15, remarks by U.S. Federal Reserve Governor Kugler; at 23:00, U.S. Business Inventories and the U.S. NAHB Housing Market Index; and at 26:30, remarks by U.S. Federal Reserve Governor Cook.We will carefully monitor whether the rebound in the GBP/USD pair is sustainable.
Author: Keisuke Sakurai
