The Pound halted its three-day run of declines against the US Dollar as economists await the release of the latest UK economic growth figures. Sterling was little changed against the Euro. The data is forecast to show that the UK economy expanded by 0.7% in the third quarter of the year after growing 0.9% in the second quarter.
The US Dollar softened against most major peers as markets were spooked by news that the deadly Ebola virus had been found in New York City. A US doctor who recently returned from West Africa has been confirmed to be infected by the virus. The case is the fourth in the USA. Because of the finding, the US Dollar fell against the Japanese Yen and other safe-haven assets.
The Euro advanced against the US Dollar and was little changed against the Pound due to the release of a positive consumer climate data report from Germany. Euro sentiment improved after the data showed that the Gfk German consumer climate index rose to 8.5 in October from a revised 8.4 in September. The figure was better than the 8.0 expected by economists.
The ‘Aussie’ remained firmer against the US Dollar as news of Ebola reaching New York spooked the markets and weighed upon sentiment towards the ‘Greenback’. A strong showing in the Australian share market pushed the currency higher against most of its peers.
New Zealand Dollar
The New Zealand Dollar regained some ground as it followed its Australian relation higher but remains under pressure after Thursday’s soft inflation data release. The report caused investors to raise their bets that the Reserve Bank of New Zealand will choose to hold off on hiking interest rates. The currency was also under pressure from data which showed that the nation’s trade deficit was almost twice as big as expected at $1.4 billion.
The ‘Loonie’ was little moved on Friday but held onto gains from higher oil prices. Sentiment towards the currency remains weak after leading Canadian economists forecast that the currency is likely to suffer further losses over the coming weeks and months. Weak oil prices are forecast to negatively impact upon Canada’s economic growth.
South African Rand
The Rand was holding onto gains against the US Dollar as dealers asserted that the currency is outperforming its peers after a well-received interim budget from the Finance Minister earlier this week. However, the strong gains could overstretch the currency and result in a bounce back to weaker levels.
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