Market participants may be on alert for pound movements following the release of economic indicators during European trading hours

Market participants may be on alert for pound movements following the release of economic indicators during European trading hours

20.08.2025

In the U.S. currency market yesterday, the U.S. dollar rose against the euro after the U.S. July housing starts report, released yesterday, came in at 1.428 million—exceeding market expectations of 1.292 million and rising from the previous month’s 1.321 million.The EUR/USD pair fell from 1.1692 to 1.1638. On the hourly chart, it dropped from the +3σ to the -2σ Bollinger Band. On the 4-hour chart, it hit a new low for the week and has rebounded from the 20-day moving average (MA). On the daily chart, it is barely finding support at the 20-day MA and is hovering on the verge of breaking below it.

European currencies fell against the yen, which was supported by a stronger pound. The GBP/JPY pair dropped from 199.853 to 198.816. On the hourly chart, it has fallen from the +2σ to the -3σ Bollinger Band. On the 4-hour chart, it is already trading below the 20-period moving average, and on the daily chart, the RSI is in the midst of a sharp decline from 61 to 52.We will need to watch the price action following today’s UK CPI release to see if it clarifies the market’s direction.

Today’s schedule includes Japan’s trade balance (customs-based) and machinery orders at 8:50; the RBNZ policy rate and statement at 11:00; RBNZ Governor Hawksby’s press conference at 12:00; the UK Consumer Price Index, UK retail sales, UK Producer Price Index, and German Producer Price Index at 15:00; and the EurozoneECB President Lagarde’s remarks, 5:00 PM South African CPI, 6:00 PM Eurozone CPI, 8:00 PM U.S. MBA Mortgage Applications Index, 11:30 PM U.S. Weekly Crude Oil Inventories, 12:00 AM U.S. Fed Governor Waller’s remarks, and 3:00 AM U.S. FOMC Minutes release.We should be on the lookout for pound price movements triggered by economic data releases during European trading hours.

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