Will the Pound's Uptrend, Fueled by Rising Prices in the U.K., Continue?

Will the Pound's Uptrend, Fueled by Rising Prices in the U.K., Continue?

22.10.2026 New

In the U.S. currency market the previous day, the yield on the 10-year U.S. Treasury note fell slightly to around 5.11%, causing the U.S. dollar to weaken somewhat against major currencies. The dollar-yen exchange rate fluctuated within a range of 157.84 to 158.39 yen and closed at around 158.21 yen.Although major U.S. stock indices rose across the board, the momentum for dollar buying remained limited. The U.S. Dollar Index also traded in the 101.6 range, showing no clear direction compared to the previous day. Since the employment situation is a key factor in U.S. monetary policy decisions, attention is focused on whether the USD/JPY pair will gain a clearer direction in the 158-yen range.

The pound gained ground as the UK’s September CPI came in at 3.5% year-over-year, exceeding the forecast of 3.4%. Rising energy prices pushed up inflation, strengthening expectations of a rate hike by the Bank of England in November.The pound held firm against the dollar at around $1.339 and reached its highest level against the euro in about 17 months. Meanwhile, the euro struggled to gain ground against the dollar, trading in the low $1.12 range, with concerns also arising as French 10-year bond yields reached the 5% range. Attention is now focused on whether this divergence in the strength of European currencies will continue.

Today’s key economic indicators include the release of U.S. initial jobless claims and continuing jobless claims at 9:30 p.m. Market forecasts stand at 200,000 and 1.72 million, respectively, and the results could influence the direction of the U.S. dollar.At the same time, Canada’s industrial product prices and raw materials price index will also be released, so attention should be paid to the Canadian dollar’s reaction. At 11:00 p.m., the preliminary eurozone consumer confidence index is scheduled for release, and it is expected to deteriorate from the previous reading of -16.5 to -17.0. We will be watching the reactions of North American and European currencies closely.