Watch for any weakness in the pound following the BOE’s policy rate announcement
06.02.2025
- Swiss Employment Statistics
- Bank of England Policy Rate and Statement Release
In yesterday's U.S. currency markets, the U.S. dollar rose against the euro.The EUR/USD pair traded between 1.0370 and 1.0442. The price broke above the upper resistance zone of the 200-period SMA on the hourly chart with a real body candle. On the 4-hour chart, the price has extended to the +2σ level of the Bollinger Bands, and on the daily chart, it has risen for three consecutive days. We will be watching price movements during European trading hours to see if the US dollar’s upside momentum will stall and the currency will begin to decline.
Among European currencies, the pound fell against the yen ahead of today’s Bank of England (BOE) interest rate announcement. The GBP/JPY pair dropped from 192.765 to 190.296. The decline followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair has pulled back after hitting resistance at the 200-period exponential moving average (EMA). Since the daily chart shows a similar price movement to the 4-hour chart, we will be watching closely to see if the pound weakens further following the interest rate announcement.
Today’s schedule includes South Korea’s current account balance at 8:00, Japan’s foreign and domestic securities investment at 8:50, Australia’s trade balance at 9:30, the Philippines’ unemployment rate at 10:00, Switzerland’s employment statistics at 15:45, Germany’s new manufacturing orders at 16:00, Sweden’s consumer price index at 16:00, and the UK’sConstruction PMI, 7:00 PM: Eurozone Retail Sales, 9:00 PM: UK BOE Interest Rate Decision and Statement, 9:30 PM: US Challenger Layoffs and BOE Governor Bailey’s press conference, 10:30 PM: US Initial Jobless Claims and US Nonfarm Productivity Index, and 12:00 AM: Canada Ivey PMI.We will be watching closely for any price movements following the release of these indicators, particularly to see if the pound weakens following the BOE interest rate announcement.
Author: Keisuke Sakurai
