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 the previous session, the U.S. dollar weakened after the Federal Open Market Committee (FOMC) decided to keep the policy rate unchanged. The USD/JPY pair fell from 150.133 to 148.667, breaking below the support line formed by the 75-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has shifted from above the 20-period MA to below it, while on the daily chart, the downtrend along the 20-period MA that began in January of this year continues.

Ahead of today’s Bank of England policy rate decision, the pound fell against the yen. GBP/JPY dropped from 194.679 to 193.246. On the hourly chart, the price fell from the +2σ to the -3σ Bollinger Band. On the 4-hour chart, the price has broken below the 20-period moving average support line, and on the daily chart, there has been a clean pullback from just below the 200-period simple moving average. 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 19:00, UK BOE Policy Rate and Statement at 21:00, US Initial Jobless Claims at 21:30, UK BOE Governor Bailey’s press conference, Canadian Industrial Product Prices, US Current Account Balance, US Philadelphia Fed Business Outlook Index, and US Leading Economic Index and Existing Home Sales at 23:00.We will be watching for signs of whether the pound’s weakness will continue following 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