The Pound softened against most of its major peers as economists look ahead to upcoming UK Public Sector Net Borrowing data and digest the news that Anti-EU party UKIP won a second by-election victory. The win now leaves next year’s general election result more uncertain. Aside from the public sector borrowing figures, there is not much else data-wise to impact the currency market.

US Dollar

The US Dollar softened against a number of peers as investors locked in profits after the currency’s recent rally. Data released on Thursday showed that the Federal Reserve Bank of Philadelphia manufacturing index soared to a 21-year high. Separate data showed that existing house sales increased strongly to a 13-month high in October.

The Euro

The Euro was mixed against its major peers as Thursday’s disappointing PMI data weighed on the currency. Losses were recovered against the Pound and US Dollar however as investor attention turned to today’s speech by European Central Bank (ECB) President Mario Draghi.

Australian Dollar

The ‘Aussie’ inched higher against the Pound as it found some breathing space from investors taking profits on the US Dollar. With a lack of market moving economic data releases due for release, the ‘Aussie’ is likely to experience muted trading.

New Zealand Dollar

The New Zealand Dollar is on track to make a weekly loss against the US Dollar as data released earlier in the week continued to weigh. Dairy prices remain at their lowest level in more than five years and economists are concerned that the falling prices will have a negative impact on the nation’s economy.

Canadian Dollar

The ‘Loonie’ inched higher against the Pound and other peers as data showed that Canadian Wholesale Sales increased by 1.8% in September. The currency also found some support from increasing oil prices.

South African Rand

The Rand held onto gains against the US Dollar and other peers after the South African Reserve Bank left interest rates unchanged but hinted that they will increase eventually. The Rand also benefited from increased demand for higher yielding assets as interest rates in Europe and Japan look set to remain low.