Should we wait and see how far the euro-pound pair can rise following its sharp recovery?
23.07.2025
- European Consumer Confidence Index
- U.S. Weekly Crude Oil Inventories
In the previous day's U.S. currency trading, the Canadian dollar weakened against the yen. The CAD/JPY pair fell from 108.063 to 107.185.The price fell from the +3σ to the -3σ levels on the hourly Bollinger Bands. On the 4-hour chart, the pair rebounded after encountering resistance at the 20-day moving average (MA), and on the daily chart, it briefly broke below the 10-day MA support line. However, since the pair hit a new high yesterday during Asian trading hours, we should pay close attention to price movements during U.S. trading hours today.
Among European currencies, the euro rose against the pound.The euro rose against the pound from 0.8661 to 0.8693. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price is rising while finding support at the 20-period MA, and on the daily chart, an uptrend along the 10-period MA has been continuing since early last month. It remains to be seen whether the euro will reach the year-to-date high set in April; we should keep a close eye on the euro’s upside potential.
Today’s economic indicators include the Australian Westpac Leading Index at 9:30, remarks by Bank of Japan Deputy Governor Uchida at 10:30, Japanese machine tool orders at 15:00, South African Consumer Price Index at 17:00, U.S. MBA Mortgage Applications Index at 20:00, and the Eurozone, U.S. Existing Home Sales, 11:30 PM: U.S. Weekly Crude Oil Inventories, and 2:00 AM: U.S. 20-Year Treasury Auction. We intend to cautiously monitor the upside potential of the EUR/GBP pair, which has been showing a remarkable recovery.
Author: Keisuke Sakurai
