Here’s what you need to know to trade today Wednesday September 20:
The British pound weakened against its main rivals early on Wednesday as investors reacted to softer-than-expected UK August inflation data. Later, the Federal Reserve (Fed) will announce its decision on interest rates and publish the revised Summary of Economic Projections, the so-called “dot chart”. In the early hours of the Asian session, market participants will pay close attention to the data from the New Zealand Second Quarter Gross Domestic Product.
Annual inflation in the United Kingdom, measured by the change in the Consumer Price Index (CPI) fell from 6.8% in July to 6.7% in August, as reported on Wednesday by the British Office for National Statistics. The figure was below market expectations of 7.1%. Other details of the report revealed that core CPI inflation fell to 6.2% from 6.9% in the same period, while the retail price index rose 9.1%, compared to the 9.3% estimated by analysts. As an immediate reaction to the inflation figures, the pair GBP/USD fell to its lowest level since late May, below 1.2350. Reflecting the broad selling pressure surrounding the Pound Sterling, the EUR/GBP jumped to a six-week high above 0.8650 and GBP/JPY lost more than 50 pips to fall below 183.00.
Pound sterling quote today
The table below shows the percentage change of the British Pound (GBP) against major currencies today.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.08% | 0.27% | 0.08% | 0.01% | 0.11% | 0.17% | -0.06% | |
| EUR | 0.09% | 0.37% | 0.17% | 0.14% | 0.21% | 0.26% | 0.03% | |
| GBP | -0.30% | -0.38% | -0.22% | -0.25% | -0.18% | -0.13% | -0.36% | |
| CAD | -0.08% | -0.16% | 0.19% | -0.04% | 0.03% | 0.09% | -0.13% | |
| AUD | 0.01% | -0.12% | 0.24% | 0.08% | 0.09% | 0.14% | -0.09% | |
| JPY | -0.12% | -0.21% | 0.16% | -0.07% | -0.11% | 0.02% | -0.19% | |
| NZD | -0.15% | -0.24% | 0.11% | -0.08% | -0.14% | -0.04% | -0.23% | |
| CHF | 0.07% | -0.01% | 0.34% | 0.15% | 0.12% | 0.19% | 0.24% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).
The Fed is expected to keep its interest rate unchanged in the 5.25%-5.5% range. However, the revisions to the dot chart and the Fed Chairman’s comments, Jerome Powell, on the political outlook could trigger strong fluctuations in the US Dollar (USD). Cautious markets helped the USD hold firm against its peers in the second half on Tuesday, allowing the DXY Dollar Index remained in a consolidation phase slightly above 105.00.
See: Federal Reserve Preview: Powell will push the dollar higher with a hawkish tone
He EUR/USD rose above 1.0700 during the European session on Tuesday, but closed the day below that level. Early on Wednesday, the pair is moving up and down within a tight range.
He USD/JPY recorded small gains on Tuesday and continued to advance towards 148.00 during the Asian session on Wednesday.
He NZD/USD posted gains for the second day in a row on Tuesday and rose to the 0.5950 area early on Wednesday. The New Zealand economy is expected to grow at an annual rate of 1.2% in the second quarterbelow the 2.2% growth recorded in the first quarter.
He USD/CAD fell below 1.3400 on Tuesday for the first time in more than a monthafter Statistics Canada reported that the Annual CPI rose 4% in August, exceeding market expectations of 3.8%. However, falling crude oil prices limited the Canadian dollar’s gains and the pair erased much of its daily gains late in the American session. At the time of writing, the pair is moving sideways near 1.3450.
After Monday’s bullish action, the price of Gold continued to stretch higher on Tuesday, but struggled to gain bullish momentum. With the benchmark 10-year US Treasury yield remaining comfortably above 4.3% ahead of the Fed event, XAU/USD remains in a consolidation phase slightly above $1,930.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
