Attention on the downside potential for the pound ahead of the BOE policy rate announcement

Attention on the downside potential for the pound ahead of the BOE policy rate announcement

20.09.2022

Yesterday, the U.S. dollar traded in a tight range against the euro, with the EUR/USD pair fluctuating back and forth. The pair traded between 0.9965 and 1.0029; on the daily chart, it remains just below the 20-day moving average, and on the weekly chart, it is still trading below the 10-day moving average.With the FOMC meeting tomorrow, the direction of the market could become clearer depending on the extent of the policy rate hike, so we plan to adopt a wait-and-see approach for the time being.

Among European currencies, the euro has been holding steady at elevated levels against the pound. The EUR/GBP pair has been consolidating within a range of 0.8747 to 0.8787 while testing higher lows, and is currently trading at a new high for the year. Since the daily RSI shows no particular signs of divergence, we will be watching for developments following the Bank of England’s interest rate decision scheduled for the 22nd of this week.

Today, at 15:00 Asia time, we have the German Producer Price Index and the Swiss Trade Balance; at 21:30 U.S. time, the Canadian Consumer Price Index, the Canadian House Price Index, U.S. Housing Starts, and U.S. Building Permits; at 26:00, remarks by ECB President Lagarde and the U.S. 20-year Treasury auction;and at 28:30, remarks by BOC Deputy Governor Beaudry. With the Bank of England set to announce its policy rate on the 22nd, we will be watching closely to see if the pound continues to weaken against European currencies.

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?