Pound Sterling

The Pound was little-moved against the Euro and US Dollar as the market settled into a holding pattern ahead of the latest European Central Bank (ECB) monetary policy meeting, UK Construction PMI and US Jobless Claims data. The Pound declined against the emerging-market and commodity-based currencies as they were boosted by a weakened US Dollar.

US Dollar

The US Dollar fell against many major peers due to speculation that the currency has strengthened too rapidly over the past month. The currency was also under pressure as economists predicted that Thursday’s economic data releases would highlight the uneven nature of the US economic recovery.

Euro

The Euro was little-moved against the Pound and US Dollar, holding at two-year lows as investors await the release of the latest data from the Eurozone. The market will be paying particular attention to the session’s ECB policy meeting and press conference and will be looking for any sign that policy makers are considering implementing a quantitative easing programme similar to the type used by the UK, US and Japan. Also weighing on the currency was news that Ukraine’s ceasefire has come closer to ending as rebel forces launched an offensive against Donetsk airport.

Australian Dollar

The ‘Aussie’ rose broadly against its rivals after the US Dollar was deemed overvalued and as the local currency received support from a positive building approvals report. Data showed that Australian building approvals increased by 3.0% in August, beating expectations for a 1.0% rise. Building approvals for July were revised to a 2.1% gain from a previously estimated 2.5% increase.

New Zealand Dollar

The New Zealand Dollar leapt higher by more than 1% against the US Dollar as the market deemed the ‘Greenback’s’ gains overdone and as weaker than forecast US manufacturing data weighed upon the currency. Investors will now be focusing upon the afternoon’s US Jobless claims data.

Canadian Dollar

The ‘Loonie’ pushed higher against the Pound and other currency counterparts on the back of US Dollar weakness. With no market-moving data releases due the Canadian Dollar will see movement because of global economic developments.

South African Rand

The Rand joined other commodity and emerging-market currencies in trending higher against the Pound and other major peers as the US Dollar’s rally was deemed overdone.

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