The GBP rate firmed against the Euro on expectations that upcoming UK Service PMI data will come in positively. The service sector is the dominant sector of the UK economy and as such, a strong figure will have more of a positive impact than the previous manufacturing and construction PMI reports, which both came in better than forecast. Market attention will now turn to Thursday’s Bank of England policy meeting.

US Dollar

The US Dollar was softer against many of its major peers due to the release of more mixed data from the world’s largest economy. The ISM Manufacturing PMI came in at 53.5, below economist forecasts for a figure of 54.5. Manufacturing prices and construction spending also came in below expectations.

The Euro

The Euro gave up earlier gains against the US Dollar and other peers as optimism over hopes that a deal will be reached between Greece and its creditors softened. The leader of Germany’s Euro sceptic Alternative for Germany party said that the proposal for Greece to swap its foreign debts for growth-linked bonds was just a disguised form of debt forgiveness. The German government also needs to be convinced over the proposal.

Australian Dollar

The ‘Aussie’ rallied against the US Dollar despite the release of disappointing domestic business confidence data and a soft manufacturing PMI figure out of China. The stubbornness of the currency is likely to increase speculation that the Reserve Bank of Australia will cut interest rates again in March.

New Zealand Dollar

The New Zealand Dollar firmed after Reserve Bank of New Zealand Governor Graeme Wheeler said that interest rates would remain on hold for a prolonged period as the nation’s economy continues to perform well. A separate report showed that the number of New Zealander’s in work rose more than forecast in the fourth quarter.

Canadian Dollar

The ‘Loonie’ softened against the Pound and gave up some of yesterday’s gains on speculation that oil prices will weaken again. The commodity’s price had jumped by 20% over the past four days, but traders remain nervous and as OPEC refuses to slow production, the rise is not expected to last.

South African Rand

The Rand weakened against the Pound as concerns over South Africa’s energy supplies weighed on sentiment. The currency also fell as data showed that the nation’s private sector shrank in January.