All eyes are on whether the pound will see significant movement at the BOE meeting, where rates are expected to remain unchanged at 5.25%

All eyes are on whether the pound will see significant movement 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 in the previous month to 113,000.The EUR/USD pair fell from 1.0580 to 1.0516, dropping to levels near its two-week low. Technically, the EUR/USD 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 policy rate announcement, the pound fell against the yen. GBP/JPY dropped from 184.285 to 182.935. It broke below the 20-period moving average on the hourly chart and fell to around the 75-period moving average. While this decline is partly a correction following the sharp rise in GBP/JPY after the Bank of Japan meeting, we need to remain vigilant regarding whether the yen will strengthen in response to a rate hike.

Today’s schedule includes the Swiss Consumer Price Index at 4:30 PM, the French Budget Balance at 4:45 PM, the French Manufacturing PMI at 5:50 PM, the German Employment Report at 5:55 PM, the Norwegian Deposit Rate at 6:00 PM, the Eurozone Manufacturing PMI at 6:00 PM, the U.S. Challenger Layoffs at 8:30 PM, and the UKBOE interest rate decision and statement, 21:30 UK BOE Governor Bailey’s press conference and US initial jobless claims, 23:00 US factory orders, and 02:00 Swiss SNB Governor Jordan’s remarks. We will be watching closely to see if the pound sees significant movement following the BOE meeting, where the rate is expected to remain unchanged at 5.25%.