Attention Turns to the Pound’s Upside Potential After It Rebounded Against the U.S. Dollar
29.09.2025
- Europe: Business Sentiment
- UK Money Supply
Last weekend, the U.S. dollar hit its weakest level during U.S. trading hours, despite the U.S. August PCE Price Index—released on the 26th—coming in higher than expected on both a year-over-year and month-over-month basis. The USD/JPY pair edged lower from 149.956 to 149.399.On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price pulled back from the +2σ level of the Bollinger Bands, and on the daily chart, it fell after reaching a new high for the month.
Among European currencies, the pound was the strongest during U.S. trading hours. The GBP/USD pair rose from 1.3328 to 1.3413, recovering from below the 20-period moving average on the hourly chart to above it.On the 4-hour chart, the pair retreated from the -3σ Bollinger Band to the centerline. The daily chart showed a similar price movement to the 4-hour chart, marking a rebound from this month’s low. On the weekly chart, the pair is positioned just below the 20-period moving average (MA) support line, so we will be watching closely to see if it breaks below the 20-MA.
Today’s schedule includes the Japan Economic Trends Index at 14:00, remarks by Bank of Japan Board Member Noguchi at 14:30, UK consumer credit balances, UK money supply, and UK mortgage approvals at 17:30, and the Eurozone Consumer Confidence Index and EurozoneBusiness Sentiment, and remarks by German Bundesbank President Nagel; at 21:00, remarks by UK BOE Deputy Governor Ramsden; at 20:30, remarks by U.S. Federal Reserve Governor Waller; at 23:00, the U.S. Existing Home Sales Index;at 11:30 p.m. U.S. Dallas Fed Manufacturing Activity Index, and at 2:30 a.m. U.S. remarks by Williams, President of the New York Fed. We will be watching for further recovery potential in the pound, which has shown signs of a rebound against the U.S. dollar.
Author: Keisuke Sakurai
