Last month a report from the Federal Statistics Office raised concerns about the stability of the Alpine economy, as inflation turned into negative territory.
While the economy is recovering, the central bank now is aiming at eliminating any slack within the domestic economy.
During the whole week nobody expected a stronger-than-expected data from the Bureau of Labor Statistics, as policymakers are economists were constantly blaming weather for the recent weakness in the world's largest economy.
An equilibrium point is a market price, where suppliers and consumers meet at a particular quantity and price at which they are both satisfied.
Another portion of optimistic data from Oz country pushed the Aussie higher, with AUD/USD soaring more than 0.5% to as high as 0.9033, and still moving in a strong uptrend that began on Monday.
The Japanese Yen is steadily loosing its ground versus the greenback, contributing to the solid performance of Japanese equity indices. Comments from the Fed members are pushing the greenback higher, while a statement of Japanese government advisory about the changes in the pension fund dragged the Yen lower.
The cable was rather stable on Thursday even despite the U.K. central bank's meeting, as policymakers decided to stay pat on the policy.
A document which is also called a Beige Book is used by the U.S. policymakers to assess the current state of the economy. It is released 8 times per year; however, it tends to have a mild market impact, as the FOMC mostly pays its attention two 2 non-public reports– the Green and the Blue Book.
With no surprises for financial markets the European Central Bank stayed pat on its monetary policy on Thursday, leaving the key refinancing rate at 0.25%.
After a release of a better-than-expected GDP data from Australia, the Aussie soared 0.5% to 0.8995 against the U.S. Dollar, approaching an important resistance at 0.9000.
That was easy. The Bank of Canada was not facing a difficult choice on Wednesday and the decision to keep its monetary policy unchanged was widely expected by markets.
While both construction and manufacturing PMI sent mixed signals, they also gave a clear indication that the U.K. economic recovery remains on track.
This week's main highlight is the statistics from the U.S. labour market. A couple of months ago, ADP report, unemployment rate and NFP all had a significant impact on market's movement, however, now it seems to be subdued.
Shinzo Abe and Haruhiko Kuroda are doing whatever it takes to end decade of deflation in the world's third largest economy, but perhaps, the Eurozone will become another Japan?
The Australian Dollar made a U-turn against its U.S. counterpart following the Reserve Bank of Australia's meeting, where policymakers decided to keep its monetary policy on hold, reiterating its earlier pledge to keep rates on hold for a longer period of time.
Another signs that Shinzo Abe's inflation-promoting economic policies may be starting to feed through the labour market, lifting workers' wages.
As usually, during the first week of each month the U.K. is posting data from all key pillars of the economy, including manufacturing, services and construction activity indexes.
While markets are focusing on the unemployment rate and payrolls later this week, a new survey from the National Park Service showed an interesting fact that nobody was paying attention to.
Maintaining price stability in the Eurozone is one of the main priorities for the European Central Bank. While last week's CPI report eased some of the pressure on Mario Draghi
The AUD/USD currency pair moved higher this week, recovering from 0.8890 and moving above 0.8922 on the back of stronger-than-expected fundamental data from Australia.
The Bank of Japan once being confident in reaching the 2% inflation target within two years amid unprecedented stimulus measures, that are aimed at boosting growth and inflation, is now starting to sound less optimistic amid the upcoming tax hike in April.
A slowdown is over? Earlier this year the Bank of England predicted the economy will lose some of its value, as recovery is not yet sustained and figures can differ from month to month.
Fourth quarter's GDP report raised concerns about the chosen course by the Federal Reserve. Moreover, analysts have expressed their concerns that first quarter's growth can be even slower, just around 2%.
The most traded currency pair is likely to stay lower in the first half of the weak ahead of the ECB's meeting, while the U.S. currency found backing in its safe-haven appeal amid growing tensions in Ukraine.