Markets are likely to keep a close eye on the pound’s movements as it falls ahead of the UK interest rate announcement

Markets are likely to keep a close eye on the pound’s movements as it falls ahead of the UK interest rate announcement

14.06.2022

In yesterday’s U.S. currency markets, the euro/dollar pair fell by approximately 120 pips from 1.0518 to 1.0399 amid a sharp rise in U.S. Treasury yields. The euro/dollar pair has continued its downward trend since last weekend, and if this decline persists, we will need to closely monitor whether it moves toward last month’s low of 1.0351.

Ahead of the Bank of England’s interest rate announcement the day after tomorrow, the pound has weakened, causing the euro/pound exchange rate to rise from 0.8529 to 0.8594. While a rate hike to 1.25% is expected at the BOE’s announcement the day after tomorrow, we want to carefully assess the market movements leading up to the event to determine whether tomorrow’s UK Consumer Price Index (CPI) results will cause any fluctuations.

Today’s schedule includes the UK unemployment rate and jobless claims, as well as Germany’s final consumer price index, at 3:00 PM Asia time; the Eurozone and Germany ZEW economic sentiment surveys at 6:00 PM Europe time; the US NFIB Small Business Optimism Index at 7:00 PM; and, once US trading hours begin, Canadian manufacturing shipments at 9:30 PM,U.S. Producer Price Index, and at 7:45 the following day, New Zealand’s Q1 Current Account Balance. We will be closely monitoring the movement of the pound, which is currently falling ahead of the UK interest rate announcement.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?