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
- Australia: Private-Sector Credit
In the U.S. currency market the previous day, the Canadian dollar saw a back-and-forth movement against the yen. The CAD/JPY pair traded between 112.730 and 113.261, with price action consistently fluctuating around the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the currency pair is seen searching for direction while finding support at the 20-period moving average, and on the daily chart, it is 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%.GBP/JPY 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 (MA) remains intact, and on the daily chart, the currency pair continues to hit new highs along the 10-period MA.
Today’s economic indicators include the New Zealand Consumer Confidence Index at 6:00, the New Zealand Trade Balance at 6:45, the Japan Consumer Price Index at 8:30, the New Zealand ANZ Business Confidence Index at 9:00, the UK GfK Consumer Confidence Survey at 9:01, and the AustraliaPrivate Sector Credit, around noon: Japan’s BOJ Policy Rate and Statement, 15:30: Japan’s BOJ Governor Ueda Press Conference, 16:00: UK Retail Sales, Germany’s Producer Price Index, Germany’s GFK Consumer Confidence Survey, 16:45: France’sProducer Price Index; at 20:00, UK CBI Retail Trade Survey; at 22:30, Canada Retail Sales; and at 24:00, US Existing Home Sales and University of Michigan Consumer Sentiment Index.I’d like to wait and see whether the pound, which weakened after the BOE announcement, will recover.
