With the pound showing strength ahead of the BOE meeting, investors should watch for potential upside

With the pound showing strength ahead of the BOE meeting, investors should watch for potential upside

21.03.2024

In the previous day’s U.S. currency trading, 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 EUR/USD has touched the +3σ line of the Bollinger Bands, while on the daily chart, the RSI stands at 59 and is in the overbought zone. We will be watching closely to see if the euro continues to strengthen against the US dollar.

In the European currency markets, 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 pair, GBP/JPY has risen from 191.738 to 193.527, forming an uptrend along the 10-period moving average on the hourly chart. However, 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 and services PMIs at 17:15, German manufacturing and services PMIs at 17:30, the Swiss National Bank’s (SNB) policy rate decision and statement at 17:30, Eurozone manufacturing and services PMIs at 18:00, the ECB’s monthly report, a press conference by SNB Governor Jordan at 18:00, and UKBOE policy rate and statement release at 21:30, U.S. initial jobless claims and the Philadelphia Fed Business Outlook Index at 21:30, remarks by BOC Deputy Governor Gravel at 22:35, and U.S. Manufacturing/Services PMI at 22:45. We will closely monitor the upside potential of the pound, which is currently firming ahead of the BOE announcement.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   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

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   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?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed