The Pound fell to its lowest level in over a month against the Euro and remained hovering around a 14-month low against the US Dollar as investors focus on the release of the minutes of the last Bank of England monetary policy meeting. The minutes are likely to show that policy makers have become more dovish in their assessment on when to raise interest rates. As a result, the Pound is likely to soften further. Against the riskier commodity-based assets, Sterling regained ground as traders grow nervous over Japan and tensions between the West and Russia.

US Dollar

The US Dollar advanced against most major peers as traders seek shelter in the safe-haven currency. The market is jittery after Japanese Prime Minister Shinzo Abe called snap elections after the Asian nation fell into recession. Traders will turn their attention to the evening’s FOMC minutes which could show that Fed policy makers are getting closer to raising rates, a hawkish report would likely bolster the ‘Greenback’ further.

The Euro

The Euro held onto gains against the Pound and other peers after economic sentiment in Germany and the wider Eurozone soared to a 4-month high this month. The single currency could make further gains if the day’s Current Account and Construction Output data comes in positively.

Australian Dollar