Market participants may be waiting to see if the pound, which has weakened against the yen, has room to recover
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, much like the Japanese yen. The USD/CHF pair rose from 0.7915 to 0.7979, rebounding from the -2σ to +2σ levels on the hourly Bollinger Bands.On the 4-hour chart, the candlesticks have rebounded to the 20-day moving average (MA), 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 the UK’s August BRC same-store sales, released yesterday, recovering to 2.9% from 1.8% the previous month. GBP/JPY fell from 199.880 to 198.791. The price did not find support at the 200-period SMA on the hourly chart and broke below it with a real body candle.On the 4-hour chart, a price reversal is observed near the 75-period moving average (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 8:00 PM, remarks by SNB Governor Schlegel at 8:45 PM, the U.S. Producer Price Index at 9:30 PM, U.S. Wholesale Inventories at 11:00 PM, U.S. Weekly Crude Oil Inventories at 11:30 PM, and the U.S. 10-Year Treasury Auction at 2:00 AM.We will cautiously monitor the potential for a recovery in the pound, which has been weakening against the yen.
Author: Keisuke Sakurai
