Focus on the Continued Strength of the Dollar Following the FOMC Meeting and the Pound’s Performance After the BOE Meeting

Focus on the Continued Strength of the Dollar Following the FOMC Meeting and the Pound’s Performance After the BOE Meeting

18.06.2026 New

In the previous day’s U.S. currency markets, U.S. retail sales for May rose 0.9% month-over-month, exceeding market expectations of 0.5%, highlighting the resilience of U.S. consumer spending.While the Federal Open Market Committee (FOMC) kept the policy interest rate unchanged at 3.50% to 3.75%, expectations that a rate hike would occur later this year grew stronger, causing the U.S. dollar to rise against major currencies.The dollar-yen pair traded within a range of 160.19 to 160.44 yen in the Tokyo session. Although it settled in the upper 160.10 yen range at 17:00, it briefly extended its gains to the upper 160 yen range following the FOMC announcement.The focus now is on whether the pair can hold around 160.50; resistance is likely to be seen around 160.70 to 161.00, while support is likely to be found around 160.00 to 159.50.Today, U.S. initial jobless claims and the Philadelphia Fed Manufacturing Index are scheduled for release, and we will be watching to see if the U.S. dollar’s strength following the FOMC meeting continues.

European currencies were affected by the UK’s May Consumer Price Index (CPI), which came in at 2.8% year-over-year—below market expectations—easing concerns about further interest rate hikes by the Bank of England (BOE).Although the pound’s reaction to the CPI release was limited, it faced resistance against the dollar amid the greenback’s strength following the FOMC meeting. The GBP/USD pair traded in the low 1.34 range before recently slipping to the mid-1.33 range.Resistance is likely to be found around 1.3400 to 1.3450, while support is likely to be around 1.3350 to 1.3300; we will be watching to see if downside potential expands following the BOE meeting.Today, the BOE is scheduled to announce its policy rate and release the MPC minutes. With rates expected to remain unchanged, we will be watching the pound’s reaction to the voting breakdown and the content of the statement.

Today’s economic indicators include the Swiss National Bank’s policy rate at 16:30, the eurozone’s April current account balance at 17:00, the Bank of England’s (BOE) policy rate at 20:00, and the minutes of the Bank of England’s Monetary Policy Committee(MPC) minutes, at 21:30: U.S. initial jobless claims and continuing claims for the previous week, the Philadelphia Fed Manufacturing Index for June, and at 23:00: the U.S. Composite Leading Economic Index for May.In particular, the BOE meeting is likely to be a key driver during European trading hours, while U.S. employment and manufacturing indicators will likely be key drivers during New York trading hours; we will need to carefully assess the directional trends of the U.S. dollar, the yen, the pound, and the euro.