Caution Advised Amid Sharp Fluctuations in the Pound Following the BOE Policy Rate Announcement
16.06.2022
- UK: BOE Policy Rate and Statement Announcement
- U.S. Initial Unemployment Insurance Claims
The previous day, the U.S. dollar lost momentum despite the FOMC raising the policy rate to 1.75%, and it became 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.
Among European currencies, the pound is trading lower against Oceania currencies 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 gains at the 75-day moving average and forming lower highs, so it will be worth watching to see if the downtrend continues.
Today, at 16:30 European time, the Swiss National Bank (SNB) will announce its policy rate and statement, followed by a press conference with SNB Governor Jordan; at 20:00, the UK will releasethe Bank of England’s (BOE) policy rate and statement, the release of the BOE minutes, the Turkish Housing Price Index at 20:30, and during U.S. trading hours at 21:30, Canadian wholesale sales,U.S. initial jobless claims, U.S. housing starts, U.S. building permits, and the U.S. Philadelphia Fed Business Outlook Index at 21:30 U.S. time; U.S. weekly natural gas inventories at 23:30; and the New Zealand Manufacturing PMI at 7:30 the following day.Be on the lookout for sharp fluctuations in the pound following the Bank of England’s policy rate announcement.
Author: Keisuke Sakurai
