The Pound remains under heavy pressure against its major peers due to concerns over the upcoming Scottish Referendum. In an attempt to win support for staying in the UK, the leaders of the Labour, Conservative and Liberal Democrat parties are heading north to plead their case, it remains to be seen whether their presence will be a help or a hindrance. Further losses were held in check however after the release of positive UK industrial production data and comments by Bank of England Governor Mark Carney.
The US Dollar was holding onto gains against most of its major peers as hawkish language from the Federal Reserve Bank of San Francisco continued to support. Investors have raised their bets that the central bank will choose to raise interest rates earlier than previously expected. The ‘Greenback’ could make further gains if the latest Mortgage Applications data comes in positively.
The Euro remains at a 14-month low against the US Dollar as concerns over the strength of the Eurozone economy continue to weigh heavily. The single currency could experience further volatility if Industrial Production data out of France and Spain disappoints.
The ‘Aussie’ tumbled against all of its major peers following the release of a weaker than expected consumer sentiment report. According to Westpac Banking Corporation, consumer sentiment in Australia fell by 4.6% this month, a sharp drop from the 3.8% rise recorded in August. Falling iron ore prices and concerns over a drought are also weighing upon the currency.
New Zealand Dollar
The New Zealand Dollar fell to a seven-month low against the US Dollar as investors turned their attention to the Reserve Bank of New Zealand’s upcoming policy statement. Against its Australian relation, the ‘Kiwi’ advanced.
The ‘Loonie’ slumped to a four-month low against the US Dollar amid speculation that the US Federal Reserve will raise interest rates at a faster pace than the Bank of Canada. Falling crude oil prices and concerns over China also weighed upon the currency.
South African Rand
The Rand declined further against the US Dollar and tumbled against other major peers, as economists grow increasingly concerned over the state of the South African economy. The shortfall in the nation’s current account widened to 6.2% of GDP in the second quarter as strikes heavily affected exports. Economists had been forecasting that the gap would widen to 5.45%.
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