The Pound ended last week lower against a number of major peers as uncertainty over next year’s UK General election spooked the markets. A speech by Prime Minister David Cameron on immigration did little to ease doubts over the result of the election. As this week begins, the Pound has recovered some ground against the single currency as economists look ahead to the release of a number of important reports. Sterling could see further movement if today’s Markit/CIPS Manufacturing PMI data comes in below expectations.

US Dollar

The US Dollar advanced against several major peers as demand for the safe-haven currency was boosted by a further fall in commodity prices and the release of negative data out of China. The major focus for the market will be the latest US Markit and ISM Manufacturing PMI data. Economists are forecasting that the US manufacturing sector will outdo its global peers.

The Euro

The Euro is under pressure and is likely to remain so until Thursday’s European Central Bank (ECB) interest rate decision and press conference. The single currency is feeling the heat as economists raise their bets that the bank will introduce a quantitative easing programme in the next quarter after inflation across the Eurozone fell again last week.

Australian Dollar

The ‘Aussie’ declined to a new four-year low against the US Dollar and weakened against most major peers after data out of China came in below forecasts. According to the data released by HSBC, the nation’s final manufacturing PMI remained at the stagnant level of 50.0.

New Zealand Dollar

The New Zealand Dollar followed its Australian relation lower against the US Dollar and other rivals as the Chinese data weighed heavily upon emerging market and commodity based assets. A further fall in commodities also put pressure on the ‘Kiwi’.

Canadian Dollar

The ‘Loonie’ weakened against all of its currency counterparts and looks set to remain under heavy pressure due to last week’s decision by OPEC to not cut oil production. Crude oil prices tumbled to new multi-year lows and dragged the currency lower. Disappointing data out of China also weighed.

South African Rand

The Rand weakened against the Pound and other peers as it suffered in reaction to the Chinese data, tumbling commodity prices and the release of poor domestic trade data. The South African trade deficit widened sharply to 95.11 billion Rand in October as imports soared and exports waned.