Will the U.S. Dollar's Rebound and the Pound's Strength Persist?

Will the U.S. Dollar's Rebound and the Pound's Strength Persist?

05.11.2026 New

In the U.S. currency market the previous day, dollar selling dominated in the wake of the U.S. midterm election results, causing the dollar/yen pair to briefly fall to around 157.38 yen. Subsequently, buying interest emerged, and the pair closed at around 158.42 yen in New York trading.U.S. October ADP employment figures rose by 86,000, exceeding market expectations, but the ISM Non-Manufacturing Purchasing Managers’ Index came in at 54.5, below forecasts, resulting in mixed economic data.The yield on the 10-year U.S. Treasury note has fallen to around 4.89%, and the USD/JPY pair is expected to hover in the low 158-yen range as market participants assess U.S. interest rates and await the next day’s employment report.

European currencies rose against the U.S. dollar, with the euro and the pound gaining ground amid a weakening U.S. dollar.The preliminary October consumer price index for the eurozone rose 4.0% year-over-year, accelerating from the previous month’s 3.8%, but this was in line with market expectations. The euro-dollar pair briefly rose to the $1.1272 level before closing around $1.1226, failing to sustain its gains.The pound also rose to around $1.3503, and attention is likely to focus on the expected 0.25% interest rate hike at today’s Bank of England meeting, as well as the bank’s guidance on future monetary policy.

Today’s economic indicators include German manufacturing new orders at 4:00 p.m., the UK construction PMI at 6:30 p.m., and the Eurozone wholesale price index at 7:00 p.m.In particular, the Bank of England’s policy rate announcement and the minutes of the Monetary Policy Committee meeting at 9:00 p.m., as well as Governor Bailey’s press conference at 9:30 p.m., are likely to be key drivers of volatility in the pound. In the U.S., initial jobless claims will be released at 10:30 p.m., with the forecast at 196,000.We will analyze the monetary policy developments for European currencies and the U.S. employment data separately to determine the direction of the pound against the dollar.