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Should We Keep an Eye on the Euro's Upside Potential Against the Pound?

Market Report

Should We Keep an Eye on the Euro's Upside Potential Against the Pound?

Today's Highlights
  1. U.S. Consumer Confidence Index
  2. German GFK Consumer Confidence Survey

In the previous day’s U.S. currency trading, the U.S. dollar rose slightly against the yen. The USD/JPY pair rose from 152.563 to 153.248. Price action was seen moving across the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the uptrend along the 10-period moving average continues, and on the daily chart, prices are approaching this month’s high. Meanwhile, ahead of tomorrow’s FOMC meeting, the U.S. dollar has been weakening during today’s Asian trading session.

Among European currencies, the euro rose against the pound. The EUR/GBP pair rose from 0.8719 to 0.8736. The pair rebounded from the -2σ level of the hourly Bollinger Bands.On the 4-hour chart, the price has extended to the +3σ level of the Bollinger Bands, and on the daily chart, the 75-day moving average is acting as a support level, with the rebound continuing. Furthermore, the euro is continuing its upward trend during today’s Asian trading session.

Today's economic indicators include the GermanGFK Consumer Confidence Survey at 16:00, the U.S. S&P/Case-Shiller Home Price Index at 22:00, the U.S. Consumer Confidence Index and the U.S. Richmond Fed Manufacturing Index at 23:00, and a U.S. 7-year Treasury auction at 26:00.We will carefully monitor the upside potential of the euro, which has risen against the pound.

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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