The Pound Sterling advanced against the Euro as economists continued to worry about the situation in Greece and investors reacted to disappointing data out of France. Against the US Dollar, the Pound was holding close to a one-week low as the US currency regained ground due to Monday’s positive manufacturing data. Sterling is set to become increasingly volatile as Thursday’s general election gets closer.

US Dollar

The US Dollar made gains against the Pound and Euro after it found support from data showing that factory orders surged above estimate in April. A separate report also revealed that consumer sentiment in the USA rose to its highest level since January. The ‘Greenback’ could make further gains if upcoming ISM and Balance of Trade reports come in positively.

The Euro

The Euro remained under pressure from data displaying a contraction in manufacturing activity in France and Greece in April. The French PMI fell from 48.8 to 48 and the Greek PMI fell from 48.9 to 46.5. Uncertainty also remains high regarding the Greece debt situation. Talks between Athens and its creditors are expected to continue throughout the week.

Australian Dollar

The ‘Aussie’ rallied against all of its major peers after the Reserve Bank of Australia cut interest rates to a new record low level of 2%. RBA Governor Glenn Stevens said the decision came despite some ‘improved trends in household demand over the past six months and stronger growth in employment’ but cited some ongoing weakness in business capital expenditure and public spending. The ‘Aussie’ rose in spite of the decision as economists are now expecting no further cuts to be made. The currency also received support from domestic data showing that the nation’s trade deficit narrowed in April.

New Zealand Dollar

The New Zealand Dollar weakened against the US Dollar as demand for the ‘Greenback’ remained supported by Monday’s positive US data releases.

Canadian Dollar

The ‘Loonie’ softened against its major peers on Tuesday as oil prices edged lower. The price of the commodity weakened on fresh concerns over a global supply glut and the strengthening of the US Dollar. Investors will now be looking ahead to Wednesday’s US official stockpiles report for further direction on oil prices.

South African Rand

The South African Rand remains under pressure from data released on Monday, which showed that domestic manufacturing activity and car sales fell by a bigger-than-forecast margin in April, heightening concerns that power cuts in the nation are negatively impacting upon the manufacturing sector.