Market Participants May Be Waiting to See If the Pound, Which Has Weakened Against the Yen, Has Room to Rebound
10.09.2025
- U.S. Producer Price Index
- Remarks by Swiss National Bank (SNB) President Schlegel
In the previous day’s U.S. currency trading, the U.S. dollar strengthened during U.S. trading hours, just as the Japanese yen did. The USD/CHF pair rose from 0.7915 to 0.7979, rebounding from the -2σ to +2σ levels of the hourly Bollinger Bands.On the 4-hour chart, the candlesticks have rebounded to the 20-MA line, and the RSI has recovered from 24 to 48. On the daily chart, the price has bounced off the support line near the July low.
European currencies saw the pound fall against the yen, despite yesterday’s release of the UK’s August BRC same-store sales figures, which rebounded to 2.9% from 1.8% the previous month. The GBP/JPY pair fell from 199.880 to 198.791.The price did not find support at the 200-period SMA on the hourly chart but broke below it with a real-body candle. On the 4-hour chart, a price reversal is observed near the 75-period MA, while on the daily chart, the price continues to form higher lows, supported by the 20-period MA.
Today’s economic indicators include the U.S. MBA Mortgage Applications Index at 20:00, remarks by SNB Governor Schlegel of Switzerland at 20:45, the U.S. Producer Price Index at 21:30, U.S. Wholesale Inventories at 23:00,at 11:30 PM, the U.S. weekly crude oil inventory report, and at 2:00 AM, the U.S. 10-year Treasury auction. We will cautiously monitor the pound’s potential for recovery after its recent weakness against the yen.
Author: Keisuke Sakurai
