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Market Participants May Be Watching for the Pound's Potential Rebound After Its Decline Against the Yen

Market Report

Market Participants May Be Watching for the Pound's Potential Rebound After Its Decline Against the Yen

Today's Highlights
  1. France: Consumer Price Index
  2. Canada · GDP

In the U.S. currency market yesterday, the U.S. dollar rose against the euro. The EUR/USD pair fell from 1.1613 to 1.1576. On the hourly chart, the price moved from the +2σ to the -2σ Bollinger Band.On the 4-hour chart, the pair is declining as it retests the 200-period SMA, while on the daily chart, it is finding support at the 20-period MA but facing resistance at higher levels. Meanwhile, on the weekly chart, the pair is teetering on the brink of breaking below the 20-period MA support line.

Among European currencies, the pound fell against the yen. The GBP/JPY pair dropped from 207.199 to 206.432.Price action remained within the range of the 20-period moving average on the hourly chart throughout the session. On the 4-hour chart, the pair has pulled back from the +3σ level of the Bollinger Bands, and on the daily chart, the RSI has reversed after touching 70. Although the pair attempted a rebound during today’s Asian session, resistance at higher levels remains strong.

Today’s economic indicators include: at 8:30, Japan’s Consumer Price Index (Tokyo Metropolitan Area) and unemployment rate; at 8:50, Japan’s industrial production and retail sales; at 9:30, Australia’s private sector credit; at 14:00, Japan’s housing starts; and at 16:00, Germany’sretail sales; at 14:45, France’s Consumer Price Index, Producer Price Index, and Q3 GDP; at 17:00, Switzerland’s KOF Leading Index and Q3 GDP; at 17:55, Germany’sunemployment rate at 17:55, remarks by German Bundesbank President Nagel at 19:00, German Consumer Price Index at 22:00, and Canadian GDP at 22:30. We will be closely watching for any potential recovery in the pound, which has pulled back against the yen.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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