Will the market wait and see how much the euro can recover after its decline against the pound?
06.11.2025
- Bank of England Announces Policy Rate and Statement
- 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 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 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’s Industrial Production at 16:00, the UK’s Construction PMI at 18:30, and Eurozone Retail Sales at 19:00,the Bank of England (BOE) interest rate decision and statement at 9:00 PM, the U.S. Challenger job cuts report and a press conference by BOE Governor Bailey at 9:30 PM, remarks by German Bundesbank President Nagel at 9:30 PM, the Canadian Ivey PMI at midnight, U.S. weekly natural gas inventories at 12:30 AM, and remarks by Federal Reserve Governor Barr at 1:00 AM.I would like to wait and see if the euro, which has fallen against the pound, has room to recover.
Author: Keisuke Sakurai
