An unexpected decline in the rate of UK Consumer Price Inflation put the Pound under stress on Tuesday. Economists had predicted that April’s annual CPI figure would print at 0.0% following a month-on-month increase of 0.4%. However, consumer prices only rose by 0.2% on the month, resulting in a negative year-on-year figure of -0.1%. This was the first time the UK had entered negative inflation territory for over 50 years and the report had an immediate dampening effect on demand for Sterling. A quick foreign exchange market summary before we bring you the rest of the report: The Turkish Lira to British Pound exchange rate: TRY/GBP converts at 0.249. The Pound to Turkish Lira exchange rate: GBP/TRY conversion is 4.024. The Pound to Russian Rouble exchange rate converts at 1 GBP is 77.371 RUB. The Pound to Indian Rupee exchange rate today is converting at 99.072 GBP/INR. The Pound to Japanese Yen exchange rate: GBP/JPY conversion is 187.775. As well as posting a notable decline against the US Dollar, the Pound fell against the Russian Ruble, Japanese Yen, Turkish Lira and Indian Rupee after the UK inflation data was published. The GBP/RUB exchange rate lost -0.6%, the GBP/JPY exchange rate fell around -0.4%, the GBP/TRY exchange rate slid -0.25% and the GBP/INR exchange rate dropped -0.8%. The GBP/TRY exchange rate was trading in the region of 4.0327 TCMB Interest Rate Decision Could Spark Lira Movement As the week progresses the GBP/TRY exchange rate is likely to experience additional movement in response to the Turkish Central Bank’s interest rate decision. Turkey’s Consumer and Business Confidence Indexes (due out on Thursday and Friday) will also be of interest. There are no notable Indian ecostats set for publication this week, but Reserve Bank of India interest rate speculation will continue to have an impact on the direction taken by the Rupee. The GBP/JPY exchange rate may fluctuate as a result of Japan’s first quarter growth data, the Markit/JMMA Manufacturing PMI and the Bank of Japan’s Interest Rate Decision. The central bank is not expected to make any alterations to fiscal policy but a statement to be issued by the BOJ Governor will be of interest. Russia is also due to publish growth data on Wednesday, alongside industrial production figures. If the reports show the declines forecast, the GBP/RUB exchange rate may rebound. The GBP/INR exchange rate was trading in the region of 98.9510 Tomorrow the GBP/JPY, GBP/RUB, GBP/TRY and GBP/INR exchange rates could all fluctuate following the publication of minutes from the last Bank of England policy meeting. Hawkish minutes could help the Pound recover losses while dovish minutes would drive Sterling lower still.

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