Will the weak pound recover during European trading hours? Market participants are watching for upside potential.
02.03.2026
- UK Nationwide House Prices
- European Manufacturing PMI
Last weekend, the U.S. dollar traded in a narrow range against the yen after the Chicago Purchasing Managers’ Index (PMI) for February, released on February 27, improved to 57.7 from 54.0 the previous month. The USD/JPY pair traded between 155.543 and 156.236, fluctuating within the range of the -2σ to +2σ Bollinger Bands on the hourly chart.On the 4-hour chart, prices have stalled near the point where they broke above the 200-day SMA, while on the daily chart, the upside is being capped by the downtrend line extending from January of this year.
Among European currencies, the pound was the weakest from European to U.S. trading hours. The GBP/JPY pair fell from 210.814 to 209.802. 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 has pulled back from the 200-period simple moving average (SMA) line it had broken above and is already trading below the 20-period MA. On the daily chart, the price is hovering just below the 20-period MA, searching for direction.
Today’s economic indicators include remarks by Bank of Japan Deputy Governor Himeno at 10:30, UK Nationwide House Price Index at 16:00, German Manufacturing PMI at 17:55, Eurozone Manufacturing PMI at 18:00, UK Consumer Credit Balance, UK Money Supply, and UK Manufacturing PMI at 18:30,21:30: Remarks by MPC member Taylor (UK); 23:00: Remarks by ECB President Lagarde (EU) and Bundesbank President Nagel (Germany); 23:45: US PMI; and 24:00: US ISM Manufacturing Index. We will be watching closely to see if the pound, which has been weakening, shows signs of recovery during European trading hours and whether there is room for further gains.
Author: Keisuke Sakurai
