Currency news / January 14, 2026

JPY losses continue to mount

3 min read Thanim Islam

Thanim IslamJanuary 14, 2026

Market snapshot:

Markets continue to position for snap election
US inflation numbers fail to move the needle on expected rate cuts
GBP supported despite outlook

Yesterday's currency recap

USD firmed, despite the fact that December US core CPI came in slightly softer than expected, reinforcing the case for Fed rate cuts later in the year without materially shifting rate expectations – markets are still pricing in 50bps worth of rate cuts this year. Core CPI rose 0.2% m/m versus 0.3% forecast, with annual inflation at a four-year low of 2.6%, prompting muted moves in US treasury yields.

USD gains were most pronounced against JPY, which slid to its weakest level since July 2024 amid political uncertainty after reports that Japan’s prime minister is considering a snap election. JPY was the worst performing currency in the G10.

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	0.18%	2.0101
GBPCAD	-0.16%	1.8656
GBPCHF	0.15%	1.0754
GBPDKK	-0.04%	8.6201
GBPEUR	-0.04%	1.1536
GBPJPY	0.37%	213.728
GBPNOK	0.02%	13.5541
GBPNZD	0.24%	2.3388
GBPSEK	0.20%	12.3726
GBPUSD	-0.25%	1.3433

*Daily move - against G10 rates as of 06:00 GMT, 14.01.26
** Indicative rates - interbank rates as of 06:00 GMT, 14.01.26

Key data points

Currency	Event	Period	Consensus	Previous
USD	PPI MoM	Nov	0.20%
USD	PPI YoY	Nov	2.70%
USD	Retail Sales MoM	Nov	0.40%	0.00%
USD	Retail Sales YoY	Nov	0.40%	0.80%

Speeches

GBP: BoE Ramsden and Taylor
USD: Fed Paulson, Miran, Bostic, Kashkari and Williams

What we think

Following speculation of a snap election being called in Japan, JPY is weaker this morning.

US CPI is expected to firm in December, with headline and core seen rising around 0.4% MoM, pushing YoY inflation back toward 2.8%. The pickup is largely technical, reflecting earlier data distortions rather than renewed inflation pressure. Unless core meaningfully overshoots, CPI is unlikely to shift the Fed narrative, though a hot headline could briefly support the USD and lift yields.

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