Attention is turning to the pound’s potential for further recovery following its rebound against the U.S. dollar
29.09.2025
- EU Economic 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, a pullback occurred from the +2σ level of the Bollinger Bands, and on the daily chart, the price 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 price has retreated from the -3σ Bollinger Band back toward the centerline. The daily chart shows a similar price movement to the 4-hour chart, marking a rebound from this month’s low. On the weekly chart, the price is positioned just below the 20-day moving average (MA) support line, so we will be watching closely to see if it breaks below the 20-day MA.
Today’s schedule includes: Japan’s Economic Trends Index at 14:00, remarks by Bank of Japan Board Member Noguchi at 14:30, UK Consumer Credit, UK Money Supply, and UK Mortgage Approvals at 17:30, the Eurozone Consumer Confidence Index, Eurozone Economic Sentiment, and remarks by German Bundesbank President Nagel at 18:00, and at 21:00, the UKRemarks by BOE Deputy Governor Ramsden, at 20:30 remarks by Fed Governor Waller, at 23:00 the U.S. Existing Home Sales Index, at 23:30 the U.S. Dallas Fed Manufacturing Activity Index, and at 02:30 remarks by NY Fed President Williams. 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
