Will the weak pound recover during European trading hours? Keep an eye on its upside potential.

Will the weak pound recover during European trading hours? Keep an eye on its upside potential.

02.03.2026

Last weekend, the U.S. dollar fluctuated 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, moving 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 trading hours through 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 now 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 key events 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, 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 Purchasing Managers' Index; 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.

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