Concerns over further downside potential for the euro against the pound

Concerns over further downside potential for the euro against the pound

13.01.2026

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen. The USD/JPY pair climbed from 157.515 to 158.198. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, an uptrend is developing along the 10-period MA, and on the daily chart, the price is extending its gains near the +2σ level of the Bollinger Bands. Notably, during today’s Asian trading session, the pair has already touched its year-to-date high of 158.985.

Among European currencies, the euro fell against the pound.The euro-pound pair fell from 0.8692 to 0.8659. It pulled back after encountering resistance at the 200-period SMA on the hourly chart. On the 4-hour chart, the price has fallen from the +2σ to the -2σ Bollinger Bands, and on the daily chart, the 10-period MA is acting as resistance, with the price dropping to near the 200-period EMA. Furthermore, during today’s Asian trading session, the price action has followed the pattern seen yesterday.

Today’s schedule includes remarks by Williams, President of the New York Fed, at 8:00 a.m., the Westpac Consumer Confidence Index from Australia at 8:30 a.m., Japan’s trade balance at 8:50 a.m.,at 2:00 PM: Japan’s Economic Watchers Survey; at 4:45 PM: France’s Budget Balance; at 6:00 PM: UK BOE Governor Bailey’s remarks; at 8:00 PM: US NFIB Small Business Optimism Index; at 10:30 PM: Canada’s Housing Starts;U.S. Consumer Price Index, 12:00 AM U.S. New Home Sales, U.S. Musalem: St. Louis Fed President remarks, 3:00 AM U.S. 30-Year Treasury Auction, and 4:00 AM U.S. Budget Balance. Be cautious of further downside potential for the euro, which has fallen against the pound.

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