Forex Today: Soft UK inflation weighs on Pound Sterling, focus shifts to US data

Here is what you need to know on Wednesday, December 20:

The US Dollar continued to weaken against its rivals on Tuesday as global bond yields retreated following the Bank of Japan’s (BoJ) inaction. The Conference Board’s Consumer Confidence Index for December and Existing Home Sales data for November will be featured in the US economic docket later in the day. Investors will also continue to pay close attention to comments from central bank officials.

The benchmark 10-year US Treasury bond yield declined toward 3.9% on Tuesday and Wall Street’s main indexes closed in positive territory. US stock index futures trade flat early Wednesday and the 10-year yield stays near 3.9%. Meanwhile, the US Dollar Index holds steady above 102.00 after losing nearly 0.4% in the previous day.

Inflation in the UK, as measured by the change in the Consumer Price Index (CPI), declined to 3.9% in November from 4.6% in October, the UK’s Office for National Statistics reported on Wednesday. On a monthly basis, the CPI fell 0.2%. The Core CPI, which excludes volatile food and energy prices, increased 5.1%, down sharply from the 5.7% increase recorded in October. Pound Sterling came under bearish pressure following softer-than-forecast inflation readings. At the time of press, GBP/USD was trading deep in negative territory below 1.2700.

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 Japanese Yen.

 
USD
EUR
GBP
CAD
AUD
JPY
NZD
CHF

USD
 
0.24%
0.43%
0.08%
-0.12%
-0.25%
-0.16%
0.05%

EUR
-0.24%
 
0.20%
-0.15%
-0.36%
-0.46%
-0.38%
-0.21%

GBP
-0.43%
-0.18%
 
-0.34%
-0.55%
-0.67%
-0.58%
-0.38%

CAD
-0.08%
0.15%
0.35%
 
-0.19%
-0.31%
-0.23%
-0.08%

AUD
0.12%
0.34%
0.54%
0.20%
 
-0.11%
-0.03%
0.15%

JPY
0.24%
0.49%
0.66%
0.31%
0.09%
 
0.10%
0.24%

NZD
0.14%
0.38%
0.57%
0.23%
0.02%
-0.07%
 
0.19%

CHF
-0.01%
0.21%
0.40%
0.06%
-0.14%
-0.25%
-0.17%
 

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).

USD/CAD fell sharply and touched its weakest level since early August below 1.3350 on Tuesday. The data published by Statistics Canada showed that the annual CPI rose 3.1% in November, coming in higher than the market expectation of 2.9% and matching the October reading. Early Wednesday, the pair stays in a consolidation phase and trades in a narrow channel at around 1.3350.

Hawkish comments from European Central Bank (ECB) officials helped the Euro stay resilient against its peers. EUR/USD registered gains for the second consecutive day on Tuesday and came within a touching distance of 1.1000 before correcting toward 1.0950 early Wednesday. 

USD/JPY surged to 145.00 during the European trading hours on Tuesday after the BoJ disappointed markets by refraining from hinting at an exit from negative rate policy. After a downward correction in the second half of the day, the pair went into a consolidation phase below 144.00 mid-week.

Gold benefited from falling global bond yields on Tuesday and advanced toward $2,050. Although XAU/USD has lost its bullish momentum, it seems to have stabilized at around $2,040.

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.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/forex-today-soft-uk-inflation-weighs-on-pound-sterling-focus-shifts-to-us-data-202312200714