Caution Advised Amid Sharp Fluctuations in the Pound Following the BOE Policy Rate Announcement

Caution Advised Amid Sharp Fluctuations in the Pound Following the BOE Policy Rate Announcement

16.06.2022

The previous day, 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 within a range on the 4-hour chart, with the 20-period moving average acting as resistance, 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 pair is forming a pattern where the 75-day moving average acts as resistance and the high is being lowered, 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’s housing price index will be released; and at 21:30 EST, Canada’s wholesale sales figures will be released,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.

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?