Should investors be on alert for pound movements following the BOE’s expected 0.25% rate hike?

Should investors be on alert for pound movements following the BOE’s expected 0.25% rate hike?

21.09.2023

In yesterday’s U.S. currency trading, the dollar strengthened against the euro following the press conference, as Fed Chair Powell responded with his usual standard remarks at the FOMC meeting, stating, “We remain strongly committed to achieving a 2% inflation rate.” The EUR/USD pair hit a high of 1.0736 before pulling back, falling to 1.0658.As the pair has fallen to 1.0617 during today’s Asian session, traders should remain vigilant for further euro weakness during European trading hours.

Ahead of today’s BOE policy rate announcement, the pound traded in a narrow range against the yen. GBP/JPY rose from 182.452 to 183.345 but failed to maintain its strength during U.S. trading hours and fell.During today’s Asian session, it has fallen to 182.381. GBP/JPY has been trading in a narrow range below the 20-day moving average since the start of the month, but with the 75-day moving average providing support in the 181-yen range, we will be watching closely to see if it rebounds at that level.

Today’s schedule includes UK public sector net debt at 3:00 PM, French corporate sentiment at 3:45 PM, Turkish consumer confidence index at 4:00 PM, the SNB policy rate and statement at 4:30 PM, and at 8:00 PM, the UKBOC policy rate and statement, and Turkey’s TCMB policy rate and statement at 8:00 PM; U.S. initial jobless claims, U.S. current account balance, and U.S. Philadelphia Fed Business Outlook Index at 9:30 PM; U.S. existing home sales and U.S. leading economic index at 11:00 PM; and remarks by ECB President Lagarde and the Eurozone consumer confidence index.We should remain highly vigilant regarding the pound’s price movements, given expectations of a 0.25% rate hike by the BOE.

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