Pound Weakens Ahead of FOMC, Bank of England, and Bank of Japan Announcements

The British Pound has been experiencing weakness in recent weeks due to various economic factors. As of September 15, 2026, the B6Z26 futures contract settled at 1.3481. This decline is attributed to several announcements scheduled for this week, including the Federal Reserve's FOMC announcement on Thursday and the Bank of England's decision on interest rates later that day. The Bank of Japan will also be making an announcement regarding its monetary policy.

Given these factors, traders are expecting a potential continuation of the pound's weakness. With 25 basis point hikes expected from both the Federal Reserve and the Bank of Japan, while the Bank of England is anticipated to hold rates steady, this unique opportunity presents itself for short positioning in the British Pound market.

Walsh Trading's Senior Market Strategist Michael O'Donnell suggests considering a short futures position or other strategies such as a covered put or debit put spread. These options aim to reduce risk and capitalize on the expected trend of the pound.