Market participants are watching to see if the rebound in the GBP/USD pair will hold
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% in 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 crossing 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 the +3σ levels on 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 trading days. However, as the pound has weakened again during today’s Asian session, we should keep a close eye on price movements during European trading hours.
Today’s schedule includes Japan’s trade balance (customs-cleared basis) and foreign/domestic securities investment at 8:50 a.m., Australia’s employment report at 10:30 a.m., the UK’s ILO unemployment rate and employment report at 3:00 p.m., the Eurozone’s consumer price index at 6:00 p.m., and the U.S. initial jobless claims, Canada’s international securities turnover, and U.S. retail sales at 9:30 p.m.U.S. Import Price Index, U.S. Initial Jobless Claims, at 10:15 PM: Remarks by Fed Governor Kugler, at 11:00 PM: U.S. Business Inventories, U.S. NAHB Housing Market Index, and at 2:30 AM: Remarks by Fed Governor Cook. We will be closely monitoring the sustainability of the rebound seen in the GBP/USD pair.
Author: Keisuke Sakurai
