Market Participants May Be on Alert for Pound Movements Following the BOE Policy Rate Announcement

Market Participants on Alert for Pound Movements Following BOE Policy Rate Announcement

03.11.2022

In the U.S. currency market the previous day, the U.S. dollar rose following remarks by Federal Reserve Chair Powell at the FOMC meeting that “the terminal rate will likely be higher than previously expected.”The Dollar Index recovered to 111.8. The EUR/USD pair fell by approximately 160 pips from 0.9974 to 0.9814. During today’s Asian trading session, the 10-period moving average on the hourly chart is acting as resistance, and the pair is beginning to trend lower again; therefore, we should remain vigilant to see if the decline continues into the European session.

Ahead of today’s Bank of England (BOE) policy rate announcement, the pound is trending lower against the yen. The GBP/JPY pair fell by about 2 yen, from 170.334 to 168.332, breaking below the 75-period moving average on the 4-hour chart.With a 0.75% rate hike expected in today’s policy rate announcement, all eyes will be on the 9:00 PM announcement to see whether the result aligns with market expectations and whether the downward trend will continue.

Today’s schedule includes the Turkish Consumer Price Index at 4:00 p.m., remarks by German Bundesbank President Nagel at 5:00 p.m., remarks by ECB President Lagarde at 5:05 p.m., the UK Services PMI at 6:30 p.m.,at 8:30 p.m., the U.S. Challenger layoff forecast; at 9:00 p.m., the Bank of England’s policy rate decision and statement; at 9:30 p.m., a press conference by Bank of England Governor Bailey; Canadian housing permits;U.S. Initial Jobless Claims, U.S. Trade Balance, U.S. Q3 Nonfarm Productivity, at 23:00 U.S. ISM Non-Manufacturing PMI, and U.S. Weekly Natural Gas Inventories.We will monitor the market direction closely while remaining vigilant for any sudden fluctuations in the pound following the BOE’s policy rate announcement.