The Pound weakened against the US Dollar on Monday due to data showing that construction activity in the UK slowed by more than forecast. In contrast, construction activity in the US increased by the most since May. Against the Euro, the Pound was holding onto gains as a run of poor Eurozone data releases and Thursday’s European Central Bank meeting weighed on the currency.

US Dollar

The US Dollar strengthened against the majority of its most traded peers after construction sector spending increased by 1.1% in October from the preceding month. The figure beat economist forecasts for a rise of 0.6%. The ‘Greenback’ will likely see movement later in the session due to the release of the latest ADP Employment Change report and ISM Non-Manufacturing PMI data.

The Euro

The Euro remains weaker against the Pound and US Dollar as concerns over the health of the Eurozone economy spook investors. Weak Producer Price Inflation data released on Tuesday did little to ease fears over low inflation and increased pressure on the European Central Bank to take further action to stimulate growth and tackle the threat posed by deflation. The Euro will experience further volatility due to the release of a number of PMI and retail sales reports.

Australian Dollar

The ‘Aussie’ fell to its lowest level in more than four years against the US Dollar after domestic GDP data disappointed the markets. The Australian Bureau of Statistics said that the country’s gross domestic product rose 0.3% in the third quarter, less than the expected 0.7% increase and down from a growth rate of 0.5% in the three months to June. Year-on-year, Australia’s economy grew by 2.7% in the third quarter compared to expectations for expansion of 3.1%.

New Zealand Dollar

The New Zealand Dollar weakened against the US Dollar, Pound and other major peers as demand for the US currency was supported by growing expectations that the Federal Reserve is getting closer to raising interest rates. Weak Australian GDP data also weighed on the ‘Kiwi’.

Canadian Dollar

The ‘Loonie’ recovered some ground against several rivals after the price of crude oil rebounded from near $70 a barrel as the market rout caused by OPEC’s decision to not curb production waned.

South African Rand

The Rand continued to weaken on the back of US Dollar strength and expectations that the latest confidence report due to be released by the South African Chamber of Commerce and Industry will disappoint. Also scheduled for publication is South Africa’s HSBC PMI data.