Market participants may be on the lookout for pound movements following the release of economic indicators during European trading hours
20.08.2025
- Japan's Trade Balance (on a customs-cleared basis)
- European Consumer Price Index
In the U.S. currency market yesterday, the U.S. dollar rose against the euro after the July housing starts figure, 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 remained firm. 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 customs-cleared trade balance and machinery orders at 8:50 a.m., the RBNZ policy rate and statement at 11:00 a.m., RBNZ Governor Hawksby’s press conference at 12:00 p.m., the UK Consumer Price Index, UK Retail Sales, UK Producer Price Index, and German Producer Price Index at 3:00 p.m., and the EurozoneECB President Lagarde’s remarks, 17:00 South Africa CPI, 18:00 Eurozone CPI, 20:00 US MBA Mortgage Applications Index, 23:30 US Weekly Crude Oil Inventories, 24:00 US Fed Governor Waller’s remarks, and 27:00 release of the US FOMC minutes.We should be on the lookout for pound price movements triggered by economic data releases during European trading hours.
Author: Keisuke Sakurai
