Watch for the upside potential of the pound, which is showing strength ahead of the BOE meeting
21.03.2024
- Swiss National Bank (SNB) Policy Rate and Statement Release
- Bank of England Announces Policy Rate and Statement
In the previous session, the U.S. dollar weakened during U.S. trading hours after the FOMC decided to keep the policy rate unchanged.The EUR/USD pair rose from 1.0836 to 1.0922, breaking above the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the pair has touched the +3σ line of the Bollinger Bands, while on the daily chart, the RSI stands at 59 and is in overbought territory. We will be watching closely to see if the euro continues to strengthen against the US dollar.
Among European currencies, the pound is rising against the yen ahead of today’s Bank of England (BOE) interest rate announcement. In contrast to the falling USD/JPY, GBP/JPY has risen from 191.738 to 193.527, forming an uptrend along the 10-period moving average on the hourly chart. Since the market expects the BOE to keep rates at 5.25% today, we will need to carefully assess whether the pound will continue to rise against the yen.
Today’s schedule includes: Australian employment data at 9:30, French Manufacturing/Services PMI at 17:15, German Manufacturing/Services PMI at 17:30, the Swiss National Bank (SNB) policy rate and statement at 17:30, Eurozone Manufacturing/Services PMI and the ECB Monthly Report at 18:00, a press conference by SNB Governor Jordan at 18:00, and UKBOE policy rate and statement release, 9:30 PM US Initial Jobless Claims and Philadelphia Fed Business Outlook Index, 10:35 PM remarks by BOC Deputy Governor Gravel, and 10:45 PM US Manufacturing/Services PMI. We will closely monitor the upside potential of the pound, which is currently firming ahead of the BOE announcement.
Author: Keisuke Sakurai
