Will the Market Wait and See How Much the Euro Can Recover After Its Decline Against the Pound?
06.11.2025
- UK: BOE Policy Rate and Statement Release
- Germany: Industrial Production
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. It moved from the -3σ to the +2σ level on the hourly Bollinger Bands.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 closely monitoring the U.S. dollar for further weakness during the European session.
Among European currencies, the euro fell against the pound. The euro/pound exchange rate dropped from 0.8829 to 0.8798.On the hourly chart, the price has moved from above the 20-period moving average to below it. On the 4-hour chart, a pullback from the +2σ level of the Bollinger Bands is evident, and on the daily chart, the RSI is declining from 68, just shy of 70. 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’sIndustrial Production at 4:00 PM, UK Construction PMI at 6:30 PM, Eurozone Retail Sales at 7:00 PM, the Bank of England’s (BOE) policy rate decision and statement at 9:00 PM, U.S. Challenger Layoffs at 9:30 PM,press conference by BOE Governor Bailey, remarks by German Bundesbank President Nagel, the Canadian Ivey Purchasing Managers’ Index at 24:00, U.S. weekly natural gas inventories at 24:30, and remarks by Fed Governor Barr at 25:00.I’d like to wait and see if the euro, which has fallen against the pound, has room to recover.
Author: Keisuke Sakurai
