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 trading, 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 by the market, but the committee signaled that it would refrain from significant rate cuts in the future. 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 are beginning to show signs 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 price has rebounded with the 75-period moving average (MA) acting as a support level, 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 firming alongside the US dollar following the FOMC meeting.