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Despite verbal interventions from Japanese authorities, the yen continues to weaken, with the USD/JPY surpassing 160 yen. This has led to a continued strengthening of the dollar, and some analysts predict that the USD/JPY could rise to 170 yen. The dollar’s strength, driven by the yen’s weakness, is expected to persist for a while. Meanwhile, the Bank of England decided to hold interest rates steady on the 20th. However, the market expects the Bank of England to cut rates 1-2 months earlier than the Federal Reserve. Consequently, the pound is also likely to remain weak against the dollar for the time being.
– On June 27, Bank of England Governor Bailey will give a speech, and the U.S. Q1 GDP (QoQ) will be announced.
– On June 28, the UK’s Q1 GDP, the U.S. May PCE Price Index, and the Federal Reserve’s Monetary Policy Report will be released.
– On July 2, the Eurozone’s June Consumer Price Index will be announced, and Federal Reserve Chairman Powell will deliver a speech.
The GBP/USD has continued to decline after breaking below the support of the trend channel. It is expected to drop to around the trend’s low point, which is anticipated to be in the 1.24000-1.24200 range. However, it is still unclear whether it will break the trend, so we will look for a rebound once it reaches the low point.
If the movement differs from expectations, we will promptly adjust our strategy.