Will the Bank of England raise rates by 0.25% or more? Market participants are keeping a close eye on the pound’s movements.

Will the Bank of England raise rates by 0.25% or more? Market participants are keeping a close eye on the pound’s movements.

22.06.2023

In the previous day’s U.S. currency trading, the U.S. dollar rose against the yen after Federal Reserve Chair Powell stated during his congressional testimony that “we are currently far from our inflation target, and it is reasonable to continue raising rates at a gradual pace,” adopting a hawkish stance consistent with the FOMC.The USD/JPY pair rose by approximately 100 pips from 141.282 to 142.368, setting a new high for the year. Given that yesterday’s rise brought the pair to the 61.8% Fibonacci retracement level on the daily chart, we will be watching closely to see if it enters a correction phase.

Among European currencies, the pound traded in a narrow range against the yen ahead of today’s Bank of England (BOE) interest rate announcement. Following yesterday’s release of the UK’s May CPI, which showed the core index rising to 7.1% year-on-year from 6.8% the previous month, the pound surged by about 80 pips immediately after the release but then fell back for four consecutive hours. It eventually dropped to 1749.922.While a rate hike to 4.75% is expected at today’s BOE meeting, we should remain cautious as to whether the pound will fall following the announcement.

Today, the Swiss National Bank (SNB) will announce its policy rate and statement at 4:30 p.m., followed by remarks from U.S. Federal Reserve Governor Waller at 5:00 p.m., the Bank of England (BOE) policy rate and statement at 8:00 p.m., and the Turkish Central Bank (TCMB) policy rate and statement at 8:00 p.m. At 9:00 p.m., German Bundesbank President Nagel will deliver remarks,at 9:30 PM, U.S. initial jobless claims and the U.S. first-quarter current account balance; at 10:55 PM, remarks by U.S. Federal Reserve Governor Bowman; at 11:00 PM, U.S. existing home sales and testimony by U.S. Federal Reserve Chair Powell; at 11:30 PM, U.S. weekly natural gas inventories; and at midnight, U.S. weekly crude oil inventories.We need to remain vigilant regarding the economic indicators and market movements to see if the Bank of England will raise rates by 0.25% or more.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 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

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 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

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 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?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran