Will the pound, which weakened after the BOE announcement, recover? Or should we wait and see which direction it takes?
19.12.2025
- UK GfK Consumer Confidence Survey
- Australian Private Sector Credit
In the previous day's U.S. currency trading, the Canadian dollar saw a seesawing trend against the yen. The CAD/JPY pair traded between 112.730 and 113.261, with price action remaining within the range of the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair sought direction while finding support at the 20-period MA, and on the daily chart, it has been trading sideways near its year-to-date highs.
European currencies saw the pound fall against the yen following yesterday’s Bank of England (BOE) policy rate announcement, in which the policy rate was cut by 0.25 percentage points from 4.00% to 3.75%. The GBP/JPY pair traded between 207.760 and 209.013, with gains made during European trading hours being offset during U.S. trading hours.On the 4-hour chart, the uptrend along the 20-period moving average remains intact, and on the daily chart, the pair continues to hit new highs along the 10-period moving average.
Today's economic indicators include the New Zealand Consumer Confidence Index at 6:00 a.m., the New Zealand Trade Balance at 6:45 a.m.,8:30 AM: Japan Consumer Price Index, 9:00 AM: NZ ANZ Business Confidence, 9:01 AM: UK GfK Consumer Confidence Survey, 9:30 AM: Australia Private Sector Credit, around noon: Japan BOJ Policy Rate and Statement, 3:30 PM: Japan BOJ Governor Ueda Press Conference, 4:00 PM: UK Retail Sales,Germany: Producer Price Index, Germany: GfK Consumer Confidence Survey, 4:45 PM: France: Producer Price Index, 8:00 PM: UK: CBI Retail Trade Survey, 10:30 PM: Canada: Retail Sales, 12:00 AM: US: Existing Home Sales, US: University of Michigan Consumer Sentiment Index. I’ll be watching to see if the pound, which weakened after the BOE announcement, will recover.
