Will the pound, which has weakened against the U.S. dollar, rebound, or should we wait and see?
26.08.2025
- Japan Corporate Services Price Index
- U.S. Richmond Fed Manufacturing Index
In U.S. currency trading the previous day, the U.S. dollar reached its strongest level during U.S. trading hours after the U.S. July new home sales figure, released yesterday, came in at 652,000—exceeding market expectations of 629,000 and rising from the previous month’s 627,000.The USD/JPY pair rose from 146.779 to 147.903. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price recovered to around the midpoint of the range of last weekend’s sharp decline, while on the daily chart, it returned to just below the 20-period MA.
Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3528 to 1.3447, breaking well below the support line formed by the 200-period simple moving average (SMA) on the hourly chart.On the 4-hour chart, while the 200 SMA is acting as a support level, the price has pulled back from the +2σ Bollinger Band; on the daily chart, the price is in the process of forming lower highs since early last month.
Today, the Japanese Corporate Services Price Index will be released at 8:50, the RBA minutes will be published at 10:30, U.S. durable goods orders at 21:30, the U.S. second-quarter housing price index and the U.S. S&P/Case-Shiller housing price index at 22:00,at 11:00 p.m., remarks by a member of the Bank of Manchester’s Monetary Policy Committee (MPC), the U.S. Richmond Fed Manufacturing Index, and the U.S. Conference Board Consumer Confidence Index; at 2:00 a.m., a U.S. 2-year Treasury auction; and at 3:30 a.m., remarks by Bank of Canada Governor McClem.I’d like to wait and see whether the pound, which has been weakening against the U.S. dollar, will show signs of recovery.
