Market participants may be on alert for pound movements following the BOE's policy rate announcement

Market participants may be on alert for pound movements following the BOE’s policy rate announcement

03.11.2022

In yesterday’s U.S. trading session, 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 session, the 10-period moving average on the hourly chart is acting as resistance, and the pair is beginning to trend downward again. We should remain vigilant to see if the decline continues into the European session.

Ahead of today’s Bank of England (BOE) interest rate announcement, the pound is trending lower against the yen. The GBP/JPY pair fell by approximately 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 announcement, all eyes will be on the 9:00 PM release to see if the result aligns with market expectations and whether the downward trend continues.

Today’s schedule includes the Turkish Consumer Price Index at 4:00 PM, remarks by German Bundesbank President Nagel at 5:00 PM, remarks by ECB President Lagarde at 5:05 PM, the UK Services PMI at 6:30 PM, U.S. Challenger job cuts at 8:30 PM, and the UKthe Bank of England’s interest rate decision and statement, a press conference by Bank of England Governor Bailey at 9:30 PM, Canadian housing starts, U.S. initial jobless claims, the U.S. trade balance, and U.S. third-quarter nonfarm labor productivity, and at 11:00 PM, the U.S. ISM Non-Manufacturing Index and U.S. weekly natural gas inventories.We will monitor the market direction while remaining vigilant for any sudden price movements in the pound following the BOE interest rate announcement.