Will the pound, which has fallen against the U.S. dollar, recover? Market participants are watching for signs of a trend.

Will the pound, which has fallen against the U.S. dollar, recover? Market participants are watching for signs of a trend.

05.02.2026

In yesterday's U.S. currency markets, the U.S. dollar rose against the euro.The EUR/USD pair fell from 1.1838 to 1.1790. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the pair is pulling back after encountering resistance at the 20-MA, and on the daily chart, it is currently hovering on the verge of breaking below the 20-MA, which had previously served as support. Furthermore, as the pair has continued to decline during today’s Asian session, we should remain vigilant for further weakness in the euro during the European session.

Among European currencies, the pound fell against the U.S. dollar ahead of today’s Bank of England policy rate announcement. The GBP/USD pair fell from 1.3733 to 1.3642.On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price continues to decline just below the 75-period MA, and on the daily chart, it has already fallen to around the midpoint of last month’s gains. The price has broken below the 10-period MA, which had previously provided support, with a real body.

Today’s economic indicators include remarks by U.S. Federal Reserve Governor Cook at 8:30 a.m., Australia’s trade balance at 9:30 a.m., Germany’s manufacturing orders at 4:00 p.m., and France’sIndustrial Production, and the French Manufacturing Production Index; at 6:30 PM, the UK Construction PMI; at 7:00 PM, Eurozone Retail Sales; at 9:00 PM, the Bank of England’s (BOE) interest rate decision and statement; at 9:30 PM, a press conference by BOE Governor Bailey; the US Challenger Job Cuts Report; at 10:15 PM, theECB policy rate and statement release, 10:30 PM US Initial Jobless Claims, 10:45 PM Eurozone ECB President Lagarde press conference, 12:00 AM US JOLTS Job Openings, 12:30 AM US Weekly Natural Gas Inventories, and 2:40 AM Canada BOC Governor McClem remarks are scheduled.We will be watching closely to see if the pound, which has fallen against the US dollar, will recover.

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