Should we keep an eye on the pound’s upside potential following its recovery against the U.S. dollar?
20.03.2026
- Germany: Producer Price Index
- Total Retail Sales
In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen following the BOC decision. The CAD/JPY pair dropped from 116.499 to 114.732. A downtrend developed along the -2σ line of the hourly Bollinger Bands.On the 4-hour chart, the price has fallen just below the 200-day SMA. On the daily chart, the price has broken below the 20-day MA support line with a real body candle, and the RSI has fallen from 63 to 47.
European currencies rose against the U.S. dollar as the Bank of England (BOE) kept its policy rate unchanged at 3.75% during yesterday’s monetary policy meeting.GBP/USD rose from 1.3245 to 1.3466. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the candlesticks surged to just below the 200-period exponential moving average (EMA), while on the daily chart, the price broke below the 200-period simple moving average (SMA) and is now attempting to retest it.
Today's economic indicators include New Zealand's trade balance at 6:45 a.m.,at 4:00 PM: UK public sector net debt and German producer price index; at 7:00 PM: Eurozone current account balance and Eurozone trade balance; at 8:00 PM: UK CBI Business Survey; at 9:30 PM: Canadian retail sales, Canadian industrial product prices, and Canadian raw materials price index; and at 2:30 AM: remarks by German Bundesbank President Nagel.Please note that the Japanese market is closed today for a public holiday. We will be watching for further upside potential in the pound, which has recovered against the US dollar.
Author: Keisuke Sakurai
