Will the pound weaken following the BOE's policy rate announcement? Caution is advised.
01.02.2024
- Remarks by Bank of England Governor Bailey
- Bank of England Announces Policy Rate and Statement
In yesterday's U.S. currency trading, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 110.207 to 109.112. It broke below the 10-day moving average (MA) and fell to just below the 20-day MA. Since the CAD/JPY pair is beginning to decline from the upper boundary of its daily descending channel, we should remain vigilant to see if the Canadian dollar's decline continues during European trading hours.
Ahead of today’s Bank of England (BOE) interest rate announcement, the pound fell against the yen. The GBP/JPY pair dropped from 187.600 to 185.936, breaking below the 75-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair has already fallen below the 75-period MA, dropping to the point where it touched the -3σ line of the Bollinger Bands. We will be watching closely to see if today’s interest rate announcement leads to further weakness in the pound.
Today's key economic indicators include remarks by ECB President Lagarde at 5:00 PM, the Swiss Manufacturing PMI at 5:30 PM, the UK Manufacturing PMI at 6:30 PM, the Eurozone Consumer Price Index at 7:00 PM, and the UKBOE interest rate decision and statement at 9:00 PM, remarks by UK BOE Governor Bailey at 9:30 PM, U.S. Challenger job cuts at 10:30 PM, U.S. initial jobless claims at 10:30 PM, U.S. Manufacturing PMI at 11:45 PM, U.S. ISM Manufacturing PMI at 12:00 AM, and U.S. weekly natural gas inventories at 12:30 AM.We should remain vigilant to see if the pound weakens following the BOE interest rate announcement.
Author: Keisuke Sakurai
