Will the pound maintain its strength? Keep a close eye on price movements during European trading hours.
16.10.2025
- Japan's Tertiary Industry Activity Index
- U.S. Producer Price Index
In the U.S. currency market yesterday, the U.S. dollar fell against the euro. The EUR/USD pair rose from 1.1601 to 1.1647. The uptrend along the 20-period moving average (MA) on the hourly chart continued. On the 4-hour chart, the pair broke above the 75-period MA—which had been acting as resistance—without hesitation, and on the daily chart, the candlesticks have retreated from the -2σ line of the Bollinger Bands back toward the centerline.
Among European currencies, the pound rose against the U.S. dollar.GBP/USD rose from 1.3313 to 1.3405. The price climbed along the hourly 20-MA to the 200-SMA line. On the 4-hour chart, it has broken through the upper resistance zone at the 75-MA, and on the daily chart, a retracement from the 200-EMA to the 20-MA is being observed. Furthermore, it has continued to rise during today’s Asian session and has already broken through the hourly 200-SMA line with a real body candle.
Today’s schedule includes: Japan’s machinery orders at 8:50, Australia’s employment report at 9:30, remarks by Bank of Japan Board Member Tamura at 10:30, Japan’s tertiary industry activity index at 13:30, the UK’s monthly GDP, industrial production, manufacturing output, and trade balance at 15:00, the Eurozone’s trade balance at 18:00,21:15: Canada Housing Starts; 21:30: US Philadelphia Fed Business Outlook Index; 22:00: Remarks by Fed Governor Barr; 23:00: US NAHB Housing Market Index and remarks by Fed Vice Chair Bowman; 25:00: US Weekly Crude Oil Inventories and remarks by ECB President Lagarde.We will be closely watching price movements during European trading hours to see if the pound, now at its strongest, can maintain its momentum.
Author: Keisuke Sakurai
