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All eyes are on price movements to see if the direction of the fluctuating GBP/USD pair will become clear

Market Report

All eyes are on price movements to see if the direction of the fluctuating GBP/USD pair will become clear

Today's Highlights
  1. U.S. Consumer Price Index
  2. ZEW Economic Sentiment Index (Europe)

In yesterday’s U.S. currency market, the U.S. dollar rose against the euro. The EUR/USD pair fell from 1.1675 to 1.1590. The price dropped from the +2σ to the -3σ levels of the hourly Bollinger Bands.On the 4-hour chart, the pair is currently facing resistance at the 200 SMA, while on the daily chart, both the highs and lows are trending lower, indicating a potential bearish flag pattern. On the weekly chart, the pair is on the verge of breaking below the 10 MA, which has been acting as support, so traders should pay close attention to price movements during European trading hours.

Among European currencies, the pound saw a back-and-forth movement against the U.S. dollar. The GBP/USD pair traded between 1.3399 and 1.3476. Price action lacked direction, fluctuating around the 20-period moving average on the hourly chart.On the 4-hour chart, the pair has pulled back at the 200-period simple moving average (SMA) above it, and on the daily chart, it is in the midst of a downtrend that began last month, with successive lower highs. We will be watching to see if the pound regains momentum during today’s U.S. trading session.

Today’s schedule includes the UK BRC same-store sales at 8:01, Japan’s money supply at 8:50, Australia’s NAB Business Confidence Index at 10:30, the RBA policy rate and statement at 13:30, and theRBA Governor Block’s press conference, at 15:00 UK employment figures, at 18:00 Germany’s ZEW Economic Sentiment Index and the Eurozone’s ZEW Economic Sentiment Index, at 18:30 South Africa’s employment figures, at 21:30 the U.S. Consumer Price Index and Canada’s housing permits,and at 23:30, remarks by U.S. Federal Reserve Bank of Kansas City President Schmidt are scheduled. I’ll be watching price movements during U.S. trading hours to see if a clear direction emerges for the GBP/USD pair, which has been trading in a tight range.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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