Market participants are likely keeping a close eye on the downside potential for the pound, which has fallen against the U.S. dollar.
05.11.2025
- U.S. ISM Non-Manufacturing Purchasing Managers' 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 emerged 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 exponential moving average (EMA), and on the daily chart, the RSI has declined 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 dropped 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. 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 BOJ meeting minutes will be released at 8:50 AM, German manufacturing orders at 4:00 PM, French industrial production and the French manufacturing production index at 4:45 PM, the French non-manufacturing PMI at 5:50 PM, the German non-manufacturing PMI at 5:55 PM, the Eurozone non-manufacturing PMI at 6:00 PM, and the UK non-manufacturing PMI at 6:30 PM,at 19:00: Eurozone Producer Price Index, remarks by Nagel, President of the German Bundesbank; at 21:00: U.S. MBA Mortgage Applications Index; at 22:15: U.S. ADP Employment Report; at 23:45: U.S. Non-Manufacturing PMI; at 24:00: U.S. ISM Non-Manufacturing PMI; and at 24:30: U.S. Weekly Crude Oil Inventories.We will closely monitor the downside potential for the pound, which has fallen against the US dollar.
Author: Keisuke Sakurai
