The Pound remains under pressure against the majority of its peers and could slip below the 1.25 level against the Euro rate over the course of the session as last week’s Bank of England inflation report and soft economic data continues to weigh. Comments made by UK Prime Minister David Cameron also kept Sterling trending lower as he warned that the UK economy will be weakened by global factors. Sterling is likely to remain soft throughout the session due to a lack of market-moving economic data releases.

US Dollar

The US Dollar pulled back from a seven-year high against the Japanese Yen after data showed that the Asian nation slipped back into recession, spurring demand for the safe-haven Yen. The ‘Greenback’ could claw back ground later in the session if the day’s US Industrial Production data come in positively.

The Euro

The Euro remained higher against the Pound and US Dollar as the markets await a speech due to be given by European Central Bank President Mario Draghi. The latest Eurozone balance of trade data is also due for release.

Australian Dollar

The ‘Aussie’ advanced close to its highest level in two-weeks against the US Dollar and held onto gains against the Pound despite the publication of weaker than forecast Australian vehicle sales data. According to the Australian Bureau of Statistics, new car sales fell by 1.6% down from the 2.9% rise in the previous month.

New Zealand Dollar

The New Zealand Dollar advanced close to a two-and-a-half week high against the US Dollar as lower than forecast inflation expectations weighed on the North American currency. Against the Pound, the ‘Kiwi’ remained higher following negative comments by UK Prime Minister David Cameron. Further gains were restrained after New Zealand Finance Minister Bill English said that the USD/NZD exchange rate should trade in the region of the mid-to-high 70’s to be sustainable.

Canadian Dollar

The ‘Loonie’ was softer on Monday as it remained under pressure from weak commodity prices. The news that Japan has slipped back into recession spurred on demand for safe haven assets at the expense of riskier commodity-based currencies.

South African Rand

The Rand is largely flat against the US Dollar and other peers in early trade on Monday, with traders expecting the currency to take its cue from global market trends ahead of domestic CPI data and an interest rate decision later in the week.