Will the Bank of England’s policy rate match market expectations of 1.75%?

Will the Bank of England’s policy rate match market expectations of 1.75%?

04.08.2022

U.S. currencies rose yesterday as the dollar gained ground following the release of the July ISM Non-Manufacturing Purchasing Managers' Index, which came in at a strong 56.7.The Canadian dollar, which has a high correlation with the US dollar, also rose. The CAD/JPY pair surged by as much as 170 pips, climbing from 102.884 to 104.576. The pair has been correcting lower just below the 200 EMA on the 4-hour chart; attention is focused on whether it will rebound at the 20 MA level of 103.675 and return to an upward trend.

Ahead of today’s Bank of England policy rate announcement, the European currency market is adopting a wait-and-see stance regarding the pound’s movements, with GBP/JPY trading in a range around 162.560. Although the pair rebounded by about 180 pips yesterday, we will need to closely monitor the policy rate decision, scheduled for 8:00 PM today, to determine whether this rebound will continue.

Today, at 3:00 PM Asia time, German manufacturing orders will be released; at 5:00 PM Europe time, the ECB’s monthly report; at 5:30 PM, the UK construction PMI; at 8:00 PM, the Bank of England’s policy rate decision and statement; at 8:30 PM, a press conference by Bank of England Governor Bailey; and at 9:30 PM U.S. time, Canadian trade balance and housing starts,U.S. Initial Jobless Claims and U.S. Trade Balance at 21:30, U.S. Weekly Natural Gas Inventories at 23:30, and remarks by U.S. Federal Reserve Bank of Cleveland President Mester at 25:00. We will be watching to see if the UK policy rate matches market expectations of 1.75%.

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. while gauging the direction of currency strength and weakness?

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?