All eyes are on whether the pound, which has faced resistance against the U.S. dollar, will rebound during European trading hours.

All eyes are on whether the pound, which has faced resistance against the U.S. dollar, will rebound during European trading hours.

14.01.2026

In the U.S. currency market yesterday, the U.S. dollar rose against the yen after the U.S. December Consumer Price Index (CPI), released yesterday, remained unchanged from the previous month at 2.7% year-over-year, and the core index—excluding food and energy—also remained unchanged at 2.6%.The USD/JPY pair rose from 157.901 to 159.188. An uptrend has emerged along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is rising steeply along the 10-period MA, and on the daily chart, the RSI has already reached the 70 line.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3494 to 1.3421. It fell from the +2σ to the -2σ levels on the hourly Bollinger Bands.On the 4-hour chart, the price has shifted from above the 20-period moving average (MA) to below it, and the daily chart is showing a similar price movement to the 4-hour chart. Note that there has been a slight rebound during today’s Asian trading session, so we will be watching to see how the pound performs during European trading hours.

Today’s economic indicators include New Zealand housing permits at 6:45, Japan’s money supply at 8:50, Japan’s machine tool orders at 15:00, and at 18:15, the UK’sremarks by MPC Member Taylor, at 21:00: U.S. MBA Mortgage Applications, at 22:30: U.S. Producer Price Index, U.S. Retail Sales, and U.S. Current Account Balance, at 23:50: U.S. remarks by Paulson:Remarks by Paulson, President of the Philadelphia Fed; at 24:00: U.S. Business Inventories, U.S. Existing Home Sales, and Remarks by Fed Governor Milan; at 24:30: U.S. Weekly Crude Oil Inventories; and at 28:00: U.S. Beige Book (Regional Federal Reserve Economic Report).We will be watching closely to see if the pound, which has faced resistance against the U.S. dollar, can stage a comeback during European trading hours.