With the BOE expected to keep rates at 4.25%, all eyes are on the pound to see if it provides any clear direction

With the BOE expected to keep rates at 4.25%, all eyes are on the pound to see if the market direction becomes clearer

19.06.2025

In the previous day’s U.S. currency trading, the dollar traded in a narrow range against the euro after the FOMC meeting concluded without any surprises.With the U.S. policy rate held steady, the EUR/USD pair traded between 1.1461 and 1.1529. Price action remained confined to the area around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the candlesticks have stalled just below the 75-period MA, and on the daily chart, the pair has broken below the 10-period MA line, which had previously served as support.

Ahead of today’s Bank of England policy rate announcement, the pound fell against the yen. The GBP/JPY pair dropped from 195.346 to 194.332. It declined as it encountered resistance at the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the candlestick has fallen just below the 200-period simple moving average (SMA), and on the daily chart, it has broken below the upper level of the 20-period MA, which had previously served as support.We will be watching closely to see if the pound continues to weaken following today’s policy rate announcement.

Today’s economic indicators include Japan’s foreign and domestic securities investment at 8:50, Australia’s employment report at 10:30, Switzerland’s trade balance at 15:00, the SNB’s policy rate decision and statement at 16:30, remarks by ECB President Lagarde at 17:00, remarks by SNB Governor Schlegel at 18:00, andconstruction output, remarks by German Bundesbank President Nagel, the Bank of England’s policy rate decision and statement at 8:00 PM, the release of the Bank of England’s minutes, and the Central Bank of the Republic of Turkey’s policy rate decision and statement. With the Bank of England expected to keep rates at 4.25%, we will be watching the pound closely to see if this provides any clear direction.