Market participants are likely keeping a close eye on the downside potential for the pound, which has fallen against the U.S. dollar

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

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. Additionally, 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. GBP/USD dropped from 1.3139 to 1.3009.A downtrend has developed 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 SMA line, which had previously provided support; therefore, we should be cautious of 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, the UK non-manufacturing PMI at 6:30 PM,at 19:00: Eurozone Producer Price Index, remarks by German Bundesbank President Nagel; 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.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed