Will the pound, which weakened after the BOE announcement, recover? Or should we wait and see which direction it takes?

Will the pound, which weakened after the BOE announcement, recover? Or should we wait and see which direction it takes?

19.12.2025

In the previous day’s U.S. currency trading, the Canadian dollar saw mixed movements against the yen. The CAD/JPY pair traded between 112.730 and 113.261, with price action consistently hovering around 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 Japan Consumer Price Index, 9:00 NZ ANZ Business Confidence, 9:01 UK GfK Consumer Confidence Survey, 9:30 Australia Private Sector Credit, around noon Japan BOJ Policy Rate and Statement, 15:30 Japan BOJ Governor Ueda Press Conference, 16:00 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 want to wait and see if the pound, which weakened after the BOE announcement, will recover.

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