All Eyes on Whether the Pound Will See Significant Moves at the BOE Meeting, Where Rates Are Expected to Remain Unchanged at 5.25%

All Eyes on Whether the Pound Will See Significant Moves at the BOE Meeting, Where Rates Are Expected to Remain Unchanged at 5.25%

02.11.2023

In the U.S. currency market yesterday, the U.S. dollar temporarily rose against the euro following the release of the U.S. ADP employment report, which showed an increase from 89,000 the previous month to 113,000.The euro/dollar pair fell from 1.0580 to 1.0516, dropping to a level near its two-week low. From a technical perspective, the euro/dollar pair appears to be finding support near the support level of 1.0448, so it will be worth watching whether the euro gains ground as the U.S. dollar weakens.

Ahead of today’s Bank of England (BOE) policy rate announcement, the pound fell against the yen. The GBP/JPY pair dropped from 184.285 to 182.935.It broke below the 20-period moving average on the hourly chart and fell to near the 75-period moving average. While this decline can be seen as a correction following the sharp rally in GBP/JPY after the Bank of Japan meeting, we need to remain vigilant to see if the yen will strengthen in response to a rate hike.

Today, the Swiss Consumer Price Index is scheduled for 16:30, the French budget balance for 16:45,at 5:50 PM the French Manufacturing PMI, at 5:55 PM the German Employment Report, at 6:00 PM the Norwegian Deposit Rate, at 6:00 PM the Eurozone Manufacturing PMI, at 8:30 PM the U.S. Challenger Layoff Count, at 9:00 PM the UKthe BOE policy rate and statement, at 21:30 the UK’s BOE Governor Bailey’s press conference and U.S. initial jobless claims, at 23:00 the U.S. manufacturing orders index, and at 26:00 remarks by Swiss National Bank (SNB) Governor Jordan are scheduled.We will be watching closely to see if the pound sees significant movement during the BOE meeting, where the rate is expected to remain unchanged at 5.25%.