Should We Keep an Eye on the Pound's Downside Potential Against the U.S. Dollar?
05.11.2025
- U.S. ISM Non-Manufacturing Economic Index
- European Producer Price Index
In U.S. currency trading the previous day, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 109.795 to 108.868, forming a downtrend along the 10-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has fallen to near the 200-period 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 a further decline 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 p.m., the Eurozone Non-Manufacturing PMI; at 6:30 p.m., the UK Non-Manufacturing PMI; at 7:00 p.m., the Eurozone Producer Price Index and remarks by Nagel, President of the German Federal Bank; at 9:00 p.m., the U.S. MBA Mortgage Applications Index;U.S. ADP Employment Report at 10:15 p.m., U.S. Non-Manufacturing PMI at 11:45 p.m., U.S. ISM Non-Manufacturing Index at midnight, and U.S. Weekly Crude Oil Inventories at 12:30 a.m. We will be closely monitoring the downside potential for the pound, which has fallen against the U.S. dollar.
Author: Keisuke Sakurai
