Market Participants May Be Watching for Further Downside Potential in the Pound Against the U.S. Dollar
05.11.2025
- U.S. ISM Non-Manufacturing Economic Index
- Eurozone Producer Price Index
In the U.S. currency market yesterday, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 109.795 to 108.868. A downtrend has developed along the 10-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has fallen to near the 200 EMA, and on the daily chart, the RSI has dropped from 66 to 53. Meanwhile, on the weekly chart, the price has begun to pull back from the +3σ level of the Bollinger Bands.
Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair fell from 1.3139 to 1.3009.A downtrend has emerged along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the RSI has already fallen to 22, and the price has touched the -3σ Bollinger Band. On the daily chart, the price has closed below the 200-period simple moving average (SMA) line, which had previously provided support; therefore, we should be on guard for further declines in the pound during European trading hours.
Today, the minutes of the Bank of Japan (BOJ) meeting will be released at 8:50; German manufacturing orders at 16:00; French industrial production and the French manufacturing production index at 16:45; the French non-manufacturing PMI at 17:50; the German non-manufacturing PMI at 17:55;at 6:00 PM, the Eurozone Non-Manufacturing PMI; at 6:30 PM, the UK Non-Manufacturing PMI; at 7:00 PM, the Eurozone Producer Price Index and remarks by Nagel, President of the German Federal Bank; at 9:00 PM, the U.S. MBA Mortgage Applications Index;U.S. ADP Employment Report at 22:15, U.S. Non-Manufacturing PMI at 23:45, U.S. ISM Non-Manufacturing Index at 24:00, and U.S. Weekly Crude Oil Inventories at 24:30. We will carefully monitor the downside potential for the pound, which has fallen against the U.S. dollar.
Author: Keisuke Sakurai
