All Eyes on the BOE: Will the Pound Continue to Weaken?
20.03.2025
- U.S. Existing-Home Sales
- Prices of Agricultural and Industrial Products
In the U.S. currency market the previous day, the U.S. dollar weakened after the FOMC decided to keep the policy interest rate unchanged. The USD/JPY pair fell from 150.133 to 148.667.It broke 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, and on the daily chart, the downtrend along the 20-period MA—which began in January of this year—continues.
Ahead of today’s Bank of England (BOE) policy rate decision, the pound fell against the yen. The GBP/JPY pair dropped from 194.679 to 193.246. It fell within the Bollinger Bands on the hourly chart, ranging from +2σ to -3σ.On the 4-hour chart, the pair has broken below the 20-MA support line, and on the daily chart, it has formed a clean pullback from just below the 200-SMA. We will be watching closely to see if the pound continues to weaken during U.S. trading hours.
Today’s economic indicators include the Australian employment report at 9:30, the UK employment report and the German Producer Price Index at 16:00, and at 17:00, the Eurozone’sremarks by ECB President Lagarde, at 17:30 the Swiss National Bank (SNB) policy rate and statement, at 18:00 a press conference by SNB Governor Schlegel, at 19:00 Eurozone construction output, at 21:00 the Bank of England (BOE) policy rate and statement,at 21:30: U.S. initial jobless claims, UK BOE Governor Bailey’s press conference, Canada’s industrial product prices, U.S. current account balance, and the U.S. Philadelphia Fed Business Outlook Index; and at 23:00: U.S. leading economic index and U.S. existing home sales.We’ll be watching closely to see if the pound continues to weaken following the BOE announcement.
Author: Keisuke Sakurai
