Caution Advised Amid Sharp Fluctuations in the Pound Following the BOE Policy Rate Announcement
16.06.2022
- Bank of England Announces Policy Rate and Statement
- U.S. Initial Jobless Claims
In the previous session, the U.S. dollar lost momentum despite the FOMC raising the policy rate to 1.75%, becoming the weakest currency following the FOMC announcement. The EUR/USD pair traded in a range of about 150 pips, fluctuating between 1.0506 and 1.0357.From a technical perspective, the EUR/USD pair is trading in a range with the 20-period moving average acting as resistance on the 4-hour chart, so we will be closely monitoring price movements during today’s U.S. trading session.
European currencies are seeing the pound weaken against the Australian dollar ahead of today’s policy rate announcement, with the GBP/AUD pair falling from 1.7455 to 1.7330. On the daily chart, the price is forming a pattern where it is capping its upside at the 75-day moving average and forming lower highs, so we will be watching to see if the decline continues.
Today, at 16:30 CET, the Swiss National Bank (SNB) will announce its policy rate and statement, followed by a press conference with SNB Governor Jordan; at 20:00 CET, the Bank of England (BOE) will announce its policy rate and statement, followed by the release of the BOE minutes; at 20:30 CET, Turkey will release its housing price index; and at 21:30 EST, Canada will release its wholesale sales figures,U.S. initial jobless claims, U.S. housing starts, U.S. building permits, and the U.S. Philadelphia Fed Business Outlook Index at 9:30 PM; U.S. weekly natural gas inventories at 11:30 PM; and the New Zealand Manufacturing PMI at 7:30 AM the following day. Be on the lookout for sharp fluctuations in the pound following the BOE policy rate announcement.
Author: Keisuke Sakurai
