Dollar strength pushes down EUR/USD and GBP/USD, with Bank of England meeting in focus
The Bank of England is expected to raise rates today, but both EUR/USD and GBP/USD are moving lower in morning trading, while USD/JPY continues to move sideways.
EUR/USD
The dollar has strengthened once again with EUR/USD, and this has put further downward pressure on the pair.
A move back to the October lows at $1.1524 now seems likely, with a firm bearish view still in place. Additional declines would target $1.1392, a key level back in 2020. A more bullish view requires a move back above late October’s high at $1.168.
GBP/USD
Dollar strength is pushing GBP/USD lower, but there is the potential for a recovery should the Bank of England (BoE) prove to be more hawkish than expected.
Today could see heightened volatility around the interest rate decision and press conference, but with the rate increase so widely expected it could equally pass without much incident. The reversal from yesterday’s highs near $1.37 suggest a more bearish view prevails, with $1.355 and then $1.345 coming into view. Buyers will want to see a move back above $1.37 that then brings the late October highs around $1.384 into view.
USD/JPY
Little change has been seen here, with USD/JPY continuing to move sideways as it has done for three weeks.
¥113.50 and ¥114.50 mark the lower and upper bounds of the trading range respectively.
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