Forex Today: Pound Sterling benefits from inflation data, focus shifts to FOMC Minutes

Source Fxstreet

Here is what you need to know on Wednesday, May 22:

Pound Sterling gathers strength against its major rivals early Wednesday, boosted by the stronger-than-forecast UK inflation readings for April. Existing Home Sales data for April will be featured in the US economic docket. Later in the American session, the Federal Reserve (Fed) will release the minutes of the April 30-May 1 monetary policy meeting.

The UK's Office for National Statistics reported on Wednesday that inflation in the UK, as measured by the change in the Consumer Price Index (CPI), declined to 2.3% on a yearly basis in April from 3.2% in March. This reading, however, came in above the market expectation of 2.1%. The core CPI, which excludes volatile food and energy prices, rose 3.9% in the same period, surpassing analysts' estimate of 3.6%. GBP/USD gained traction following the UK inflation report and was last seen trading at its highest level in two months near 1.2750. Reflecting the positive impact of CPI figures on Pound Sterling, EUR/GBP trades deep in negative territory at around 0.8500.

UK CPI inflation declines to 2.3% in April, closing in on BoE's target.

British Pound PRICE Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Swiss Franc.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.08% -0.38% 0.14% -0.03% 0.04% -0.47% 0.19%
EUR 0.08%   -0.30% 0.20% 0.05% 0.13% -0.39% 0.26%
GBP 0.38% 0.30%   0.50% 0.31% 0.44% -0.09% 0.58%
JPY -0.14% -0.20% -0.50%   -0.18% -0.10% -0.60% 0.05%
CAD 0.03% -0.05% -0.31% 0.18%   0.07% -0.39% 0.21%
AUD -0.04% -0.13% -0.44% 0.10% -0.07%   -0.50% 0.17%
NZD 0.47% 0.39% 0.09% 0.60% 0.39% 0.50%   0.64%
CHF -0.19% -0.26% -0.58% -0.05% -0.21% -0.17% -0.64%  

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 British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

In the early trading hours of the Asian session, the Reserve Bank of New Zealand (RBNZ) announced that it left the policy rate unchanged at 5.5% as expected. In the policy statement, the RBNZ reiterated that the policy needs to be restricted and Governor Adrian Orr noted that they had a "real consideration" on raising rates at the meeting. NZD/USD edged higher following the RBNZ event and was last seen rising nearly 0.5% on the day at 0.6120.

Orr Speech: RBNZ Governor speaks on interest rate outlook after the hawkish hold.

The data from Japan showed that Exports and Imports both grew at an annual rate of 8.3% in April. After closing the day virtually unchanged on Tuesday, USD/JPY extends its sideways grind at around 156.50 early Wednesday. 

Japanese Yen depreciates due to increased trade deficit, steady US Dollar.

EUR/USD registered small losses on Tuesday and entered a consolidation phase during the Asian trading hours on Wednesday. The pair stays relatively quiet slightly above 1.0850 in the European morning.

Gold closed marginally lower on Tuesday and continued to edge lower early Wednesday. XAU/USD was last seen trading below $2,420.

Gold price loses its recovery momentum ahead of FOMC Minutes.

Economic Indicator

FOMC Minutes

FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.

Read more.

Last release: Wed Apr 10, 2024 18:00

Frequency: Irregular

Actual: -

Consensus: -

Previous: -

Source: Federal Reserve

Minutes of the Federal Open Market Committee (FOMC) is usually published three weeks after the day of the policy decision. Investors look for clues regarding the policy outlook in this publication alongside the vote split. A bullish tone is likely to provide a boost to the greenback while a dovish stance is seen as USD-negative. It needs to be noted that the market reaction to FOMC Minutes could be delayed as news outlets don’t have access to the publication before the release, unlike the FOMC’s Policy Statement.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Price Forecast: Drops Below $80,000 in Fifth Straight Loss, May Test $75,000 as FOMC Meeting Approaches Bitcoin falls below the $80,000 mark as the October FOMC decision approaches, threatening a further dip toward $75,000.On October 26, Bitcoin (BTC) again lost the key psychological mark o
Author  TradingKey
6 hours ago
Bitcoin falls below the $80,000 mark as the October FOMC decision approaches, threatening a further dip toward $75,000.On October 26, Bitcoin (BTC) again lost the key psychological mark o
placeholder
Gold breaks $4,000 as oil becomes the inflation problem — $3,943 is the line that mattersSpot gold closed at $3,995.6 on October 23, down about 4.1% for the week and at its lowest since mid-July, and traded near $3,988 on October 26 even as Brent crude settled at $116.72 and Middle East supply risk stayed elevated. The war premium stopped working because oil is now the inflation trade: December Fed hike odds are 68.9% and the 10-year yield is 4.988%. Here are the three numbers, the transmission chain, and the July low at $3,943 that decides whether this is a bottom or a bigger correction.
Author  Irene Q.
10 hours ago
Spot gold closed at $3,995.6 on October 23, down about 4.1% for the week and at its lowest since mid-July, and traded near $3,988 on October 26 even as Brent crude settled at $116.72 and Middle East supply risk stayed elevated. The war premium stopped working because oil is now the inflation trade: December Fed hike odds are 68.9% and the 10-year yield is 4.988%. Here are the three numbers, the transmission chain, and the July low at $3,943 that decides whether this is a bottom or a bigger correction.
placeholder
Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judgeAlphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
Author  Irene Q.
11 hours ago
Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 26, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
Author  Mitrade
15 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
placeholder
WTI drops to near 101.00 as Trump rules out immediate Iranian strikesWest Texas Intermediate (WTI) oil price declines after registering over 4% gains in the previous trading day, hovering around $101.10 during Asian hours on Monday.
Author  FXStreet
15 hours ago
West Texas Intermediate (WTI) oil price declines after registering over 4% gains in the previous trading day, hovering around $101.10 during Asian hours on Monday.
goTop
quote