British Pound Weak ahead of Fed, Bank of England and Bank of Japan Announcements, Let Alone Referendum

December 2026 British Pound Futures, B6Z26, settled 15 September 2026 at 1.3481 following reports earlier in the week meetings between the premiers of Scotland, Wales and Northern Ireland and ahead of tomorrow’s FOMC announcement and Thursday’s Bank of England announcement and minutes and Bank of Japan meeting and announcement.

Given these factors the market has trended downward this month and since the high on 21 August making lower highs and not many higher lows since the lows on 2^nd and 11^th.

Also, given the consensus for 25 basis point hikes from the FOMC and BoJ this week and for rates to hold steady for BoE, along with the independence referendum discussions, it is not hard to see this weakness potentially continue.  Also, the central banks of 3 major currencies announcing rate decisions this week and the consensus differential in rate decisions with the pound presents this unique opportunity.

Traders looking for short Pound positioning may consider a short futures position, short futures with a covered put to reduce risk or a debit put spread, as well as number of spreads in futures and options.

To discuss positioning your account in the British Pound market and many others covered on this desk according to your individual risk capital and tolerance, please find my contact information below and the link to Account Forms ,  Join My Email List  and Sign Up Now to receive more information on commodity futures and options markets. 

Michael B. O’Donnell

Senior Market Strategist

modonnell@walshtrading.com

Direct: 312-957-8248

Toll Free: 888-391-7894

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