Created
: 2025.05.20
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Forex Today: RBA and PBoC cut policy rate, eyes on Canada inflation data
World FX news
Breaking news
Forex Today: RBA and PBoC cut policy rate, eyes on Canada inflation data
New
2025.05.20 15:50
2025.05.20 15:50
2025.05.20 15:50
Here is what you need to know on Tuesday, May 20:
The Reserve Bank of Australia (RBA) and the People's Bank of China (PBoC) announced rate cuts early Tuesday, as anticipated. Meanwhile, the US Dollar (USD) struggles to stay resilient against its rivals as markets remain risk-averse. Statistics Canada will publish Consumer Price Index (CPI) data for April later in the day. Additionally, investors will continue to scrutinize comments from central bank officials.
US Dollar PRICE This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.85% | -0.64% | -0.56% | -0.18% | -0.21% | -0.63% | -0.40% | |
| EUR | 0.85% | -0.04% | 0.11% | 0.51% | 0.54% | 0.05% | 0.23% | |
| GBP | 0.64% | 0.04% | -0.15% | 0.55% | 0.58% | 0.09% | 0.27% | |
| JPY | 0.56% | -0.11% | 0.15% | 0.40% | 0.54% | 0.15% | 0.23% | |
| CAD | 0.18% | -0.51% | -0.55% | -0.40% | -0.01% | -0.45% | -0.28% | |
| AUD | 0.21% | -0.54% | -0.58% | -0.54% | 0.01% | -0.48% | -0.30% | |
| NZD | 0.63% | -0.05% | -0.09% | -0.15% | 0.45% | 0.48% | 0.17% | |
| CHF | 0.40% | -0.23% | -0.27% | -0.23% | 0.28% | 0.30% | -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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The PBoC cut its Loan Prime Rates (LPRs) on Tuesday. The one-year LPR was cut from 3.1% to 3.00%, while the five-year LPR was cut from 3.60% to 3.50%. In the meantime, China accused the United States (US) of undermining the two countries' preliminary trade agreement late Monday after the US issued an industry warning against using Chinese chips that singled out Huawei. US stock index futures were last seen losing between 0.3% and 0.5%, while the USD Index was down 0.15% at around 100.20.
The RBA lowered the Official Cash Rate (OCR) by 25 basis points (bps) to 3.85% from 4.1% following the conclusion of its May monetary policy meeting. In the policy statement, the RBA noted that the escalation of the global trade conflict was a key downside risk to the economy. While commenting on the policy outlook, RBA Governor Michele Bullock noted that more adjustments to the policy were possible and added that they have discussed whether to opt for a 25 or a 50 bps cut. After rising more than 0.8% on Monday, AUD/USD stays on the back foot early Tuesday and was last seen losing 0.5% on the day at around 0.6420.
USD/CAD trades in a tight channel near 1.3950 in the European morning on Tuesday. Annual inflation Canada, as measured by the change in the CPI, is forecast to decline to 1.6% in April from 2.3% in March.
EUR/USD stays in a consolidation phase near 1.1250 after rising about 0.7% on Monday. The European Commission will publish preliminary Consumer Confidence Index data for May later in the day.
USD/JPY registered losses for the fifth consecutive trading day on Monday. The pair continues to edge lower and trades slightly below 144.50. Japan's Finance Minister Shunichi Kato said on Tuesday that he expects any talks with US Treasury Secretary Scott Bessent this week to be based on foreign exchange.
Gold ended the day marginally higher on Monday. XAU/USD struggles to preserve its bullish momentum and retreats toward $3,200 early Tuesday.
GBP/USD holds its ground and trades above 1.3350 after rising 0.6% on Monday. The UK's Office for National Statistics will publish April CPI data early Wednesday.
Central banks FAQs
Central Banks have a key mandate which is making sure that there is price stability in a country or region. Economies are constantly facing inflation or deflation when prices for certain goods and services are fluctuating. Constant rising prices for the same goods means inflation, constant lowered prices for the same goods means deflation. It is the task of the central bank to keep the demand in line by tweaking its policy rate. For the biggest central banks like the US Federal Reserve (Fed), the European Central Bank (ECB) or the Bank of England (BoE), the mandate is to keep inflation close to 2%.
A central bank has one important tool at its disposal to get inflation higher or lower, and that is by tweaking its benchmark policy rate, commonly known as interest rate. On pre-communicated moments, the central bank will issue a statement with its policy rate and provide additional reasoning on why it is either remaining or changing (cutting or hiking) it. Local banks will adjust their savings and lending rates accordingly, which in turn will make it either harder or easier for people to earn on their savings or for companies to take out loans and make investments in their businesses. When the central bank hikes interest rates substantially, this is called monetary tightening. When it is cutting its benchmark rate, it is called monetary easing.
A central bank is often politically independent. Members of the central bank policy board are passing through a series of panels and hearings before being appointed to a policy board seat. Each member in that board often has a certain conviction on how the central bank should control inflation and the subsequent monetary policy. Members that want a very loose monetary policy, with low rates and cheap lending, to boost the economy substantially while being content to see inflation slightly above 2%, are called 'doves'. Members that rather want to see higher rates to reward savings and want to keep a lit on inflation at all time are called 'hawks' and will not rest until inflation is at or just below 2%.
Normally, there is a chairman or president who leads each meeting, needs to create a consensus between the hawks or doves and has his or her final say when it would come down to a vote split to avoid a 50-50 tie on whether the current policy should be adjusted. The chairman will deliver speeches which often can be followed live, where the current monetary stance and outlook is being communicated. A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency. All members of the central bank will channel their stance toward the markets in advance of a policy meeting event. A few days before a policy meeting takes place until the new policy has been communicated, members are forbidden to talk publicly. This is called the blackout period.
Last updated
: 2025.05.20
Related articles
USD/CHF Price Forecast: At make or a break around 0.8340
5 minutes agoUSD/CAD holds steady despite Canada's mixed CPI print
33 minutes agoGBP flat against USD ahead of CPI Wednesday - Scotiabank
2025.05.20 21:43EUR steady despite continued dovishness from ECB - Scotiabank
2025.05.20 21:36CAD holds trading range around 1.3950 ahead of CPI - Scotiabank
2025.05.20 21:34Australia: A cut and a dovish surprise - Standard Chartered
2025.05.20 21:32
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Silver holds firm above $32.00 as the US Dollar softens, eyes on $33.00 breakout
Silver (XAG/USD) is trading higher around $32.60 on Tuesday, recovering from intraday lows near $32.13 as the metal regains traction after two straight days of losses.
New
2025.05.20 22:52USD/CHF Price Forecast: At make or a break around 0.8340
The USD/CHF pair flattens around 0.8340 during North American trading hours on Tuesday after clawing back initial losses. The Swiss Franc pair rebounds as the US Dollar Index (DXY) bounced back after attracting bids near the weekly low around 100.00.
New
2025.05.20 22:49USD/CAD holds steady despite Canada's mixed CPI print
USD/CAD is trading in a tight range in the early hours of the US session as markets react to Canada's latest Consumer Price Index (CPI) data and shift focus to Wednesday's US House of Representatives vote on President Donald Trump's proposed tax bill.
New
2025.05.20 22:22GBP flat against USD ahead of CPI Wednesday - Scotiabank
Pound Sterling (GBP) is also entering Tuesday's NA session unchanged against the US Dollar (USD) and stuck within a flat channel at the upper end of its longer-term range, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.05.20 21:43EUR steady despite continued dovishness from ECB - Scotiabank
Euro (EUR) is entering Tuesday's NA session largely unchanged vs. the USD while trading with modest support over the past week or so, ignoring continued dovish messaging from key policymakers at the ECB, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.05.20 21:36CAD holds trading range around 1.3950 ahead of CPI - Scotiabank
The Canadian Dollar (CAD) continues to pivot around the mid-1.39 point as investors await signs on how US/Canada trade relations are going to evolve and the impact that will have on Canada's domestic prospects, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.05.20 21:34Australia: A cut and a dovish surprise - Standard Chartered
The Reserve Bank of Australia (RBA) cut the cash rate by 25bps to 3.85%, as we had expected. The policy statement and Governor Bullock's subsequent press conference both screened as dovish.
New
2025.05.20 21:32USD edges lower, broader sentiment softens - Scotiabank
The US Dollar (USD) is trading marginally softer on the session. Trade is relatively quiet on the face of it, with the North American holiday schedule (Memorial Day next Monday) after Canada's day off yesterday perhaps affecting participation, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.05.20 21:29AUD/USD retreats as RBA delivers expected rate cut, signals limited easing ahead
The Australian Dollar (AUD) inches lower to 0.6415 against the US Dollar (USD) on Tuesday, attempting to stabilize near the previous day's low.
New
2025.05.20 20:52US Dollar tests weekly low as US debt downgrade continues to weigh
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is slipping lower for a second consecutive day on Tuesday as markets continue to digest the recent downgrade of the rating in US debt, which led to a rollercoaster in US bond markets.
New
2025.05.20 20:52Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
