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Market Participants May Be Watching to See How Much Room There Is for a Rebound in the Pound-Dollar Pair After Its Up-and-Down Movement

Market Report

Market Participants May Be Watching to See How Much Room There Is for a Rebound in the Pound-Dollar Exchange Rate After Its Up-and-Down Moves

Today's Highlights
  1. Japan: Industrial Production
  2. Yone-Hammack: Remarks by the President of the Cleveland Federal Reserve Bank

In the U.S. currency market yesterday, the U.S. dollar fell against the yen. The USD/JPY pair fell from 156.161 to 154.943, tracking the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the price fell to just below the support line formed by the 200-period simple moving average (SMA), and on the daily chart, it temporarily broke below the 20-period moving average (MA), which had previously provided support. However, during today’s Asian trading session, the rebound has been limited to approximately 30 pips.

Among European currencies, the pound saw a seesaw movement against the U.S. dollar. The GBP/USD pair rose from 1.3354 to 1.3438. It surged along the 20-period moving average (MA) on the hourly chart before plummeting.On the 4-hour chart, a sharp decline occurred after the price touched the +3σ line of the Bollinger Bands, and on the daily chart, the price is currently pulling back from levels last seen on October 20 of this year. On the weekly chart, the price remains above the 20-period moving average.

Today’s economic indicators include Japan’s industrial production at 1:30 p.m., the UK’s industrial production, UK manufacturing output, UK GDP, and UK goods trade balance at 4:00 p.m., Germany’s consumer price index at 4:45 p.m., France’s consumer price index at 10:00 p.m., and U.S. remarks by Paulson:remarks by Paulson, President of the Philadelphia Fed; at 22:30, Canada’s wholesale sales and housing construction permits;Canada: Q3 Capacity Utilization Rate, US: Hammack—Remarks by the President of the Cleveland Fed, and at 24:35, US: Goolsbee—Remarks by the President of the Chicago Fed. I intend to wait and see how much room for recovery the GBP/USD pair has after its back-and-forth movement.

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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