With the GBP/JPY pair having rebounded from its low point, attention is turning to its upside potential
06.08.2025
- U.S. Daily: Remarks by the President of the San Francisco Federal Reserve Bank
- European Retail Sales
In yesterday’s U.S. trading session, the U.S. dollar saw a back-and-forth movement against the euro. The EUR/USD pair traded between 1.1527 and 1.1587, with price action fluctuating around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices have stalled just short of the 200-period exponential moving average (EMA), while on the daily chart, they are currently hovering as they face resistance at the 20-period MA.We will be watching closely to see if today’s U.S. trading session brings any changes to the dollar’s strength or weakness following key officials’ remarks.
Among European currencies, the pound strengthened from European trading hours into U.S. trading hours. GBP/JPY rose from 195.026 to 196.450. It has moved from below the 20-period moving average (MA) on the hourly chart to above it.On the 4-hour chart, the RSI has recovered from 30 to 44, and on the daily chart, the price is currently rebounding after breaking below the 75-day moving average. Given that the pound is also showing strength against the yen during today’s Asian session, we should remain vigilant regarding the pound’s direction during U.S. trading hours.
Today’s economic indicators include German manufacturing orders at 3:00 PM, the UK Construction PMI at 5:30 PM, Eurozone retail sales at 6:00 PM, the US MBA Mortgage Applications Index at 8:00 PM, and US weekly crude oil inventories at 11:30 PM.2:00 AM: US 10-Year Treasury Auction; 3:00 AM: Remarks by Fed Governor Cook and Boston Fed President Collins; 3:10 AM: Remarks by San Francisco Fed President Daly. We will be closely monitoring the upside potential of GBP/JPY, which has rebounded after hitting a low.
Author: Keisuke Sakurai
