The Pound softened against the Euro and US Dollar on Tuesday as data out of Germany and France came in positively and as investor attention turns to Wednesday’s UK GDP data release. The UK currency could see movement when Bank of England Governor Mark Carney delivers a speech in London later in the session.

US Dollar

The US Dollar firmed against most major peers as it continued to find support from last week’s Federal Reserve minutes, which showed that officials believe the nation’s economic recovery is strong enough to resist external threats. Further gains were restrained by data, which showed that service sector activity slowed in November. The ‘Greenback’ could strengthen later in the session due to the release of GDP growth data and CB Consumer Confidence.

The Euro

The Euro edged higher against the Pound and other peers after European Central Bank (ECB) Executive board member Benoit Coeure said that the bank would not make hasty decisions when considering introducing new stimulus measures. The comments eased some of the impact of ECB President Mario Draghi’s comments made last week. Also aiding the Euro was data out of France, which showed that business confidence increased more than forecast.

Australian Dollar

The ‘Aussie’ slipped lower against the US Dollar and Pound due to falling commodity prices and a strengthening ‘Greenback’. The currency was unable to regain ground despite consumer confidence improving.

New Zealand Dollar

The New Zealand Dollar dropped against the Pound and other major peers on Tuesday, as data showed that New Zealand’s inflation expectations ticked lower in the last quarter, while demand for the ‘Greenback’ remained broadly supported.

Canadian Dollar

The ‘Loonie’ inched higher against a number of peers as market attention turns to Thursday’s OPEC meeting. Economists are hoping that the organisation will announce a cut in production, which in turn could send oil prices higher. As crude oil is Canada’s most traded export a rise in oil prices will support the currency.

South African Rand

The Rand was trading lower against the Pound and other major peers as market attention focuses on upcoming GDP data. Economists are forecasting that South Africa’s economy grew by 1.5% on a quarter-on-quarter basis, up from the 0.6% recorded in the second quarter.