Should we wait and see how the euro-pound pair performs, given its remarkable rapid recovery?

Should we wait and see how the euro-pound pair performs, given its remarkable rapid recovery?

23.07.2025

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 temporarily broke below the 10-day MA support line. However, during today’s Asian session, the pair has already surpassed yesterday’s high, so we should pay close attention to price movements during the U.S. session.

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. We will need to keep an eye on the euro’s upside potential to see if it can reach the year-to-date high set in April.

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, the South African Consumer Price Index at 17:00, the 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.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed