Should We Be Wary of Further Declines in the Pound Against the U.S. Dollar?
22.10.2025
- UK Producer Price Index
- U.S. MBA Mortgage Applications Index
In the U.S. currency market the previous day, the U.S. dollar rose against the yen. The USD/JPY pair rose from 150.473 to 152.183. An uptrend developed along the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 200-period EMA is acting as a support level, triggering a rebound, and the daily chart is showing price action similar to that of the 4-hour chart. Additionally, on the monthly chart, the RSI is approaching the upper trendline.
Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair fell from 1.3416 to 1.3361. The decline followed the 10-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair is declining as it faces resistance at the 20-period moving average, and the daily chart shows a similar price movement to the 4-hour chart. Furthermore, since a significant decline toward this month’s low was observed during today’s Asian session, traders should be on guard for a sharp drop during the European session.
Today’s economic indicators include remarks by German Bundesbank President Nagel at 7:00, Japan’s customs-based trade balance at 8:50, the UK’s Consumer Price Index, Retail Price Index, and Producer Price Index at 15:00, South Africa’s Consumer Price Index at 17:00,at 20:00, the U.S. MBA Mortgage Applications Index; at 21:25, remarks by ECB President Lagarde; at 23:30, U.S. weekly crude oil inventories; at 25:35, remarks by Fed Governor Barr; and at 26:00, a U.S. 20-year Treasury auction.We should pay close attention to the downside potential for the pound, which has plummeted against the U.S. dollar.
Author: Keisuke Sakurai
