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All eyes are on whether the pound will show a clear direction based on remarks by BOE Governor Bailey

Market Report

All eyes are on whether the pound will show a clear direction based on remarks by BOE Governor Bailey

Today's Highlights
  1. Remarks by Bank of England Governor Bailey
  2. ZEW Economic Sentiment Index (Europe)

In the U.S. currency market yesterday, the U.S. dollar rose against the yen. The USD/JPY pair rose from 151.723 to 152.441. It moved from below the 20-period moving average (MA) on the hourly chart to above it.On the 4-hour chart, the pair has rebounded from the -3σ level of the Bollinger Bands. On the daily chart, a harami bullish candle has formed, and the RSI is hovering around 65. However, as the U.S. dollar has weakened again during today’s Asian trading session, we should pay close attention to price movements during U.S. trading hours.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3366 to 1.3315. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the pair is currently attempting to break above the 20-period moving average (MA) resistance line, while on the daily chart, prices have rebounded after touching the 200-period exponential moving average (EMA) and are now trending upward. We will monitor the situation closely during today’s European trading session to see if the pound can maintain its momentum, keeping a close eye on comments from key officials.

Today, at 8:01, UK BRC same-store sales; at 8:50, Japan’s money supply; at 9:30, Australia’s NAB Business Confidence Index; at 15:00, Germany’s Consumer Price Index, the UK’s ILO unemployment rate, and the UK’s employment statistics;at 15:30, Switzerland’s Producer Import Prices; at 18:00, Germany’s ZEW Economic Sentiment Index and the Eurozone’s ZEW Economic Sentiment Index; at 21:00, remarks by MPC member Taylor; at 21:30, Canada’s Housing Starts;at 21:45, remarks by U.S. Federal Reserve Chair Bowman; at 25:20, remarks by U.S. Federal Reserve Chair Powell; and at 26:00, remarks by Bank of England Governor Bailey. We will be closely watching to see if Governor Bailey’s remarks provide the pound with a clear direction.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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