The Pound went back on the retreat against the Euro and other peers after edging higher on Wednesday because minutes from the Bank of England’s (BoE) November policy meeting showed that more policy makers than expected continued to be in favour of increasing interest rates. Overnight, Sterling fell as economists increased their bets that a rate rise will not occur until late 2015. Traders will now be looking ahead to the release of Retail Sales data later in the session.

US Dollar

The US Dollar edged higher against most of its rivals as investors shrugged off dovish comments made by the Federal Reserve and continued to raise their bets that an interest rate hike will occur next year. The Dollar rose on sentiments that US borrowing costs are heading higher regardless of policymakers’ concerns in 2015, as the Federal Reserve is using dovish language to acclimate markets to less accommodative policy.

The Euro

The Euro strengthened against the Pound due to PPI data out of Germany coming in better than forecast. On a monthly basis, PPI rose by 0.2%, beating economist forecasts for a decline of -0.2%. The Euro could make further gains if Eurozone PMI data comes in positively.

Australian Dollar

The ‘Aussie’ softened against a number of major peers overnight as US Federal Reserve policy meeting minutes offered some support to the US Dollar and as data out of China disappointed. China’s HSBC manufacturing purchasing managers’ index fell to a six-month low of 50.0 this month from a final reading of 50.4 in October – well below the 50.3 forecast by analysts.

New Zealand Dollar

The New Zealand Dollar followed its ‘Aussie’ relation lower against several counterparts as it continued to be weighed upon by falling dairy prices and the disappointing data out of China. Against the Pound and Euro, however, the currency strengthened on demand for higher yielding assets.

Canadian Dollar

The ‘Loonie’ was softer against its US relation as the currency was weighed upon by low oil prices, the Federal Reserve minutes and the failure of the Keystone XL oil pipeline to be voted through in the US senate. The currency will likely experience movement because of Wholesale Sales data due later in the session.

South African Rand

The Rand was softer against the Pound and other major peers as investors grew jittery ahead of the release of the domestic interest rate decision. Most economists are forecasting that the South African Reserve Bank will choose to leave rates unchanged.