Market Participants Are Watching the Pound Closely as It Falls Ahead of the UK Policy Rate Announcement
14.06.2022
- UK Unemployment Rate
- Germany: Consumer Price Index (Final Figures)
In the U.S. currency market the previous day, the dollar surged on the back of a sharp rise in U.S. Treasury yields, and the euro/dollar pair fell by about 120 pips from 1.0518 to 1.0399.The EUR/USD pair has continued the downward trend that began last weekend, and if this decline persists, we will need to closely monitor whether the pair will target last month’s low of 1.0351.
Ahead of the policy rate announcement the day after tomorrow, the pound weakened against other European currencies, and the euro/pound pair rose from 0.8529 to 0.8594.Although a rate hike to 1.25% is expected at the BOE’s policy rate announcement the day after tomorrow, we want to carefully assess the price movements leading up to that event to see if tomorrow’s UK Consumer Price Index (CPI) results will cause any fluctuations.
Today, at 15:00 Asia time, the UK unemployment rate, UK jobless claims, and Germany’s Consumer Price Index (final reading) will be released, followed by theZEW Economic Sentiment Survey, and the German ZEW Economic Sentiment Survey at 18:00 during European trading hours; the U.S. NFIB Small Business Optimism Index at 19:00; Canadian Manufacturing Shipments and the U.S. Producer Price Index at 21:30 once U.S. trading hours begin; and New Zealand’s Q1 Current Account Balance at 7:45 the following day.We will be closely monitoring the movement of the pound, which is currently falling ahead of the UK interest rate announcement.
Author: Keisuke Sakurai
