The Pound weakened against most of its peers on Friday as concerns over global economic growth eased following the publication of positive US data. With a lack of economic releases out of the UK, the currency was experiencing movements because of reports from elsewhere.
The US Dollar strengthened against the Pound and Euro as Thursday’s better than forecast Jobless Claims and Industrial Production data eased concerns that the world’s largest economy is experiencing a slowdown. The currency also found support after the US government announced tougher action to tackle the threat of the Ebola virus.
The Euro regained ground against the US Dollar and Pound as concerns over the global economy eased on the back of improving US economic data. Euro sentiment remains vulnerable however after revised data on Thursday showed that Eurozone consumer price inflation rose by just 0.3% in September, in line with expectations. Concerns are also building over political instability in Greece.
The ‘Aussie’ was little changed against the US Dollar as risk aversion eased slightly on the back of positive US data. The currency remained under pressure however as iron ore prices continued to fall sharply. The commodity is Australia’s most exported good.
New Zealand Dollar
The New Zealand Dollar advanced against the Pound after the business sector welcomed the news that the country has been granted a seat on the United Nations Security Council. The move increased hopes that the country will now be able to have more of an advantage when it comes to negotiating free trade agreements.
The ‘Loonie’ regained some ground against the Pound and other rivals as concerns over the global economy softened and as the price of crude oil increased back above the key $80 per barrel level. Traders will also be looking ahead to the day’s Canadian inflation data.
South African Rand
The Rand followed other riskier assets higher on Friday as fears over global economic growth eased slightly. The currency managed to rally from its lowest level in more than a week.
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