All eyes are on the direction of the pound following its sharp decline on the back of the BOE’s policy rate decision

All eyes are on the direction of the pound following its sharp decline on the back of the BOE’s policy rate decision

04.11.2022

In yesterday’s U.S. trading session, the U.S. dollar surged after the U.S. October Manufacturing PMI, released yesterday, came in at 50.4, exceeding the market forecast of 49.9. The GBP/USD pair fell by approximately 270 pips from 1.1420 to 1.1150. On the 4-hour chart, the price broke below the uptrend that had been in place since late September.From a technical perspective, GBP/USD is currently trading just below the 200-period SMA on the 4-hour chart, so it will be worth watching to see if a rebound occurs during U.S. trading hours.

Following yesterday’s Bank of England (BOE) policy rate announcement, the pound fell sharply immediately after the release, as the central bank raised rates by 0.75%—in line with market consensus—bringing the policy rate from 2.25% to 3.00%. The GBP/JPY pair dropped approximately 340 pips, from 168.558 to 165.107.A downtrend developed along the 10-period moving average (MA) on the hourly chart. Since GBP/JPY rebounded during today’s Asian session without touching the 200-period moving average (SMA) on the hourly chart, we will be watching closely to see if a rebound and rise occur during European trading hours.

Today, during European trading hours, German manufacturing orders will be released at 16:00, French industrial production at 16:45, remarks by German Bundesbank President Nagel at 17:30, and the UKConstruction PMI, and remarks by ECB President Lagarde; at 19:00, the Eurozone Producer Price Index; at 21:15, remarks by MPC member Pill; and during U.S. trading hours at 21:30, the Canadian unemployment rate and U.S. employment report; at 23:00, the Canadian Ivey PMI and remarks by Boston Fed President Collins.We will be watching the direction of the pound, which fell sharply following the BOE interest rate announcement.

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?