Will the market wait and see how much the euro can recover after its decline against the pound?

Will the market wait and see how much the euro can recover after its decline against the pound?

06.11.2025

In yesterday’s U.S. currency trading, the U.S. dollar fell against the euro. The EUR/USD pair rose from 1.1468 to 1.1497. On the hourly chart, the price moved from the -3σ to the +2σ Bollinger Band.On the 4-hour chart, the RSI has rebounded from 30 to 45, and the daily chart, like the 4-hour chart, shows a recovery from the -3σ level of the Bollinger Bands. As the upward price movement has continued during today’s Asian session, we will be watching for further weakness in the U.S. dollar during the European session.

Among European currencies, the euro fell against the pound. The EUR/GBP pair dropped from 0.8829 to 0.8798. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, a pullback from the +2σ line of the Bollinger Bands is evident, and on the daily chart, the RSI is declining from 68, just below the 70 level. Meanwhile, the EUR/GBP pair is currently in the midst of its fifth consecutive monthly bullish candle.

Today’s economic indicators include Japan’s Monthly Labor Survey at 8:30, Australia’s Trade Balance at 9:30, Germany’s Industrial Production at 16:00, the UK’s Construction PMI at 18:30, and the Eurozone’s Retail Sales at 19:00.at 9:00 PM, the Bank of England’s policy rate decision and statement; at 9:30 PM, U.S. Challenger job cuts, a press conference by BOE Governor Bailey, and remarks by German Bundesbank President Nagel; at 12:00 AM, the Canadian Ivey PMI; at 12:30 AM, U.S. weekly natural gas inventories; and at 1:00 AM, remarks by Fed Governor Barr.I would like to wait and see if the euro, which has fallen against the pound, has room to recover.

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