Attention is turning to the upside potential of the pound, which has strengthened alongside the U.S. dollar following the FOMC meeting

Attention is turning to the upside potential of the pound, which has strengthened alongside the U.S. dollar following the FOMC meeting

18.09.2025

In yesterday’s U.S. currency markets, the dollar strengthened after the Federal Open Market Committee (FOMC) meeting held yesterday resulted in a 0.25% rate cut—the first in five meetings—as expected, but the committee signaled that it would refrain from further significant rate cuts. The euro/dollar pair surged to 1.1918 at one point, hitting a new high for the year, but subsequently lost momentum and fell back to 1.1809.On the weekly chart, the RSI and candlesticks appear to be entering a state of divergence.

Among European currencies, the pound was the second-strongest after the U.S. dollar. The GBP/JPY pair rose from 199.476 to 200.352. On the hourly chart, the price moved from the -3σ to the +3σ Bollinger Bands. On the 4-hour chart, the 75-period moving average (MA) is acting as a support level, with the price rebounding from there, while on the daily chart, the uptrend that began late last month continues along the 10-period MA. The pair is holding near its year-to-date high.

Today’s schedule includes: Japan’s machinery orders at 8:50, Australia’s employment report at 10:30, Switzerland’s trade balance at 15:00, remarks by ECB President Lagarde at 16:00, the EU’s current account balance at 17:00, EU construction output at 18:00, and the UK’sthe BOE interest rate decision and statement, and the release of the BOE minutes; at 9:30 PM, U.S. initial jobless claims and the Philadelphia Fed Business Outlook Index; at 10:00 PM, the SARB interest rate decision and statement; at 11:00 PM, the U.S. Leading Economic Index; and at 7:45 AM the following day, New Zealand’s trade balance.We will be watching for further upside potential in the pound, which has been strengthening alongside the US dollar following the FOMC meeting.

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