With the GBP/JPY pair rebounding 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
- Retail Sales in Europe
In yesterday’s U.S. currency trading, the U.S. dollar saw a seesaw movement against the euro. The EUR/USD pair traded between 1.1527 and 1.1587, with price action consistently 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 the 20-period MA acts as resistance.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 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 pair 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, 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; Remarks by Boston Fed President Collins; 3:10 AM: Remarks by San Francisco Fed President Daly. Having rebounded from its weakest levels, we will closely monitor the upside potential of GBP/JPY.
Author: Keisuke Sakurai
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