All eyes are on whether the pound will continue to weaken following the Bank of England’s decision

All eyes are on whether the pound will continue to weaken following the Bank of England’s decision

20.03.2025

In yesterday's U.S. currency markets, the U.S. dollar weakened after the FOMC decided to keep interest rates unchanged. The USD/JPY pair fell from 150.133 to 148.667, breaking below the support line formed by the 75-period moving average on the hourly chart. On the 4-hour chart, the price has shifted from above the 20-period moving average to below it, while on the daily chart, the downtrend along the 20-period moving average—which began in January of this year—continues.

Ahead of today’s Bank of England (BOE) interest rate decision, the pound fell against the yen. The GBP/JPY pair dropped from 194.679 to 193.246. On the hourly chart, it fell from the +2σ to the -3σ Bollinger Band. On the 4-hour chart, it has broken below the 20-period moving average (MA) support line, and on the daily chart, it has seen a clean pullback from just below the 200-period simple moving average (SMA). We will be watching closely to see if the pound continues to weaken during U.S. trading hours.

Today’s key economic indicators include: Australian employment data at 9:30, UK employment data and German producer price index at 16:00, remarks by ECB President Lagarde at 17:00, the SNB policy rate decision and statement at 17:30, a press conference by SNB Governor Schlegel at 18:00, and at 19:00,Construction Output, at 9:00 PM UK BOE Policy Rate and Statement, at 9:30 PM US Initial Jobless Claims, UK BOE Governor Bailey’s press conference, Canada Industrial Product Prices, US Current Account, US Philadelphia Fed Business Outlook Index, and at 11:00 PM US Leading Economic Index and US Existing Home Sales.We will be watching for signs of whether the pound’s weakness will continue following the BOE announcement.