The Pound was little changed against its major peers as the market awaits the publication of the Bank of England’s inflation report and employment data. Speculation is growing that the BoE will announce downward revisions to its earlier forecasts but will still show that the UK continues to be the fastest growing G-7 economy. Unemployment is expected to decline and wages are expected to rise, which could limit downward movement from the BoE revisions.

US Dollar

The US Dollar softened against most rivals on Tuesday as the quiet session led to investors selling the currency to make profits. Depending on the outcome of the data releases due from the UK and Eurozone, the US Dollar could move in either direction against those currencies. With no major domestic figures due for publication today economists could continue to take profits ahead of Thursday’s Jobless Claims data.

The Euro

The Euro was softer against the majority of its counterparts after data out of Germany showed that wholesale prices in the nation declined sharply in October, raising fears that the region’s largest economy is heading towards a recession. Industrial Production data is also likely to disappoint as the slowdown across the currency bloc persists.

Australian Dollar

The ‘Aussie’ moved higher against the US Dollar after it found support from the release of positive consumer sentiment and wage growth data. The Westpac Banking Corporation said Australia’s consumer sentiment rose 1.9% in November, after a 0.9% increase the previous month. A separate report showed that Australian wage prices increased by 0.6% in the third quarter, in line with expectations and unchanged from the previous quarter.

New Zealand Dollar

The New Zealand Dollar strengthened against the Euro, US Dollar and Pound as investors shrugged off comments made by Reserve Bank of New Zealand Governor Graeme Wheeler who said that the ‘Kiwi’ remains at elevated levels. Investors turned to the higher yielding ‘Kiwi’ following the release of poor data out of Germany. The data raised speculation that inflation across the Eurozone fell yet again this month.

Canadian Dollar

The ‘Loonie’ edged higher against the Pound and other peers as investors increased their demand for higher yielding assets ahead of UK and Eurozone data releases. A selloff of the US Dollar by profit takers also supported the currency.

South African Rand

The Rand weakened against a number of peers as attention turned to the release of domestic retail sales data. The currency gave up the gains it made on Tuesday following the publication of better than forecast manufacturing output data.

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