Here is what you need to know on Wednesday, September 20:
Pound Sterling weakened against its major rivals early Wednesday as investors reacted to softer-than-forecast August inflation data from the UK. Later in the day, the Federal Reserve (Fed) will announce its interest rate decision and release the revised Summary of Economic Projections (SEP) - the so-called dot plot. In the early trading hours of the Asian session, market participants will pay close attention to second-quarter Gross Domestic Product data from New Zealand.
Annual inflation in the UK, as measured by the change in the Consumer Price Index (CPI), edged lower to 6.7% in August from 6.8% in July the UK's Office for National Statistics reported on Wednesday. This reading came in below the market expectation of 7.1%. Other details of the report revealed that the Core CPI inflation declined to 6.2% from 6.9% in the same period, while the Retail Price Index rose 9.1%, compared to analysts' estimate of 9.3%. With the immediate reaction to inflation figures, GBP/USD dropped to its weakest level since late May below 1.2350. Reflecting the broad selling pressure surrounding the Pound Sterling, EUR/GBP jumped to a six-week-high above 0.8650 and GBP/JPY lost more than 50 pips to drop below 183.00.
Breaking: UK CPI inflation eases to 6.7% in August vs. 7.1% expected.
Pound Sterling price today
The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies today. Pound Sterling was the weakest against the Euro.
| 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 percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
The Fed is widely expected to leave its policy rate unchanged at the 5.25%-5.5% range. Revisions to the dot-plot and Fed Chair Jerome Powell's comments on the policy outlook, however, could trigger sharp fluctuations in the US Dollar (USD). The cautious market mood helped the USD stay resilient against its peers in the second half of the day, allowing the USD Index to stay in a consolidation phase slightly above 105.00.
Federal Reserve Preview: Powell to propel US Dollar higher with powerful projections, hawkish tone.
EUR/USD climbed above 1.0700 during the European trading hours on Tuesday but closed the day below that level. Early Wednesday, the pair was seen moving up and down in a tight channel.
USD/JPY registered small gains on Tuesday and continued to edge higher toward 148.00 in the Asian session on Wednesday.
NZD/USD registered gains for the second consecutive day on Tuesday and rose to the 0.5950 area early Wednesday. New Zealand's economy is forecast to expand at an annual rate of 1.2% in the second quarter, down from 2.2% growth recorded in the first quarter.
USD/CAD dropped below 1.3400 for the first time in over a month on Tuesday after Statistics Canada reported that the annual CPI rose 4% in August, surpassing the market expectation of 3.8%. Falling crude oil prices, however, limited the Canadian Dollar's gains and the pair erased a large portion of its daily losses in the late American session. At the time of press, the pair was moving sideways near 1.3450.
Following Monday's bullish action, Gold price continued to stretch higher on Tuesday but struggled to gather bullish momentum. With the benchmark 10-year US Treasury bond yield holding comfortably above 4.3% ahead of the Fed event, XAU/USD stays in a consolidation phase slightly above $1,930.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trims some gains, recedes to 1.1350
Despite losing some upside momentium, EUR/USD keeps the firm tone around the mid-1.1300s on Thursday, buoyed by renewed US Dollar weakness as investors grappled with the continued stalemate in US–China trade negotiations.
GBP/USD puts the 1.3300 level to the test
GBP/USD hovers around the 1.3300 area on Thursday, supported by a broad rebound in risk-sensitive assets, renewed weakness in the Greenback and lingering uncertainty over US–China trade talks.
Gold sticks to the bullish stance near $3,330
On Thursday, gold regained lost ground after two consecutive days of declines, with XAU/USD climbing back toward $3,300 per troy ounce following an earlier rally to roughly $3,370. The metal drew safe-haven buying as renewed fears of a US–China trade flare-up weighed on broader markets.
Bitcoin Price corrects as increased profit-taking offsets positive market sentiment
Bitcoin (BTC) is facing a slight correction, trading around $92,000 at the time of writing on Thursday after rallying 8.55% so far this week. Institutional demand remained strong as US spot Exchange Traded Funds (ETFs) recorded an inflow of $916.91 million on Wednesday.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.