Since the introduction of forward guidance by Mark Carney in August, the debates on when and how the central bank would adjust its policy when the goal is reached, have been on heating up.
A 16-day long government shutdown and political disputes in the world's largest economy are starting to show its real effect on the economy, leading to a large toll on consumers' and businesses' mood and willingness to increase spending.
After a promising deal in September to approve the European Central Bank as region's banking sector's supervisor, making a first step of a three-phase analysis of the institutions coming under ECB umbrella, concerns the plan will not be reached in time have occurred on Tuesday.
Australian currency reached the lowest level in two weeks against the greenback, hitting 0.95, while EUR/AUD soared to the highest since October 3 on RBA Governor Glenn Stevens' comments the Aussie would be significantly lower in the future.
The Japanese Yen plunged against all its major peers, after the BoJ Deputy Governor Kikuo Iwata once again reiterated central bank's pledge to unprecedented monetary policy.
Last week's report showed the strongest growth in over three years in the third quarter, expanding 0.8% between August and September, after a 0.7% expansion in the preceding quarter.
With U.S. Dollar slipping towards a nine-month low against a basket of major currencies on Monday and fluctuating around two-year low versus the single currency, the greenback is likely to remain under pressure on expectations the Federal Reserve will provide some dovish comments amid recent political disputes and 16-day long government shutdown.
While some analysts and politicians are already claiming the worst for Europe is over, this week's unemployment numbers may lay bare a fault line scarring the ongoing recovery as German labour market's solid performance contrasts with struggling Italian.
The New Zealand Dollar was the biggest looser last week, falling more than 2% against the major peers and posting the longest run of weekly declines against the Aussie in more than a year as the Reserve Bank of New Zealand signalled its hesitation to increase borrowing costs.
Amid signs of economic amelioration in the world's third largest economy and growing fiscal uncertainty in the United States, investors rushed to buy the Japanese Yen and sell the greenback.
As it was widely expected following a period of upbeat economic data from the U.K., a report from the Office for National Statistics showed the economy posted the strongest growth in over three years.
It is not a surprise for anyone that the recent 16-day long partial government shutdown and political disputes will have a devastating effect on the world's largest economy; however, mounting polarization of U.S. politics imperils the long term growth.
Mood amid German businesses was poised for a sixth consecutive monthly increase in October; however, markets were disappointed on Friday, as Ifo business climate index unexpectedly fell due to uncertainty over the strength of recovery in the Eurozone.
There were plenty of economic events with high importance last week that all had significant impact on financial markets; however, markets were highly volatile on Tuesday and Wednesday, when U.S. statistical office unveiled highly anticipated jobless rate and payrolls, while a day later China's money rates shot up as the People's Bank of China withdrew cash from the financial system,
Following a better-than-expected inflation data earlier this month, a report by the Statistics New Zealand showed nation's trade gap shrivelled last month on the back of strong exports that more than doubled, while imports slipped sharply.
Japan's key measure of prices ended four years of declines, signalling success of Prime Minister Shinzo Abe's aggressive fiscal and monetary policy to escape deflation and reflate the world's third biggest economy.
A day after British policymakers said there is no need in additional stimulus measures as economy is building up steam, the latest CBI quarterly Industrial Trends Survey showed optimism among U.K. manufacturers advanced at the fastest rate since April 2010, on the back of strong demand for goods and increased output.
After gaining some strength following a release of weaker-than-expected data from Europe the greenback rose from the two-year low against the single currency; however, disappointing jobless claims and trade figures from the world's largest economy pushed EUR/USD back to 1.382.
After hitting a two-year high of 1.382 on Wednesday, the single currency pulled back, following releases from the Eurozone and its largest economy, Germany, where manufacturing and services data disappointed market participants.
Analysts and market participants pruned back the chances the Reserve Bank of Australia will make another cut to its benchmark interest rate this year, as Australian consumer prices grew more than expected in the September quarter due to a surge in fuel prices.
Canadian policymakers abandoned an 18-month streak of rate-hike talk in a policy shift, saying the economy is facing slower-than-expected growth and risks of persistently weak inflationary pressure.
As it was widely expected BoE policymakers were unanimous during October meeting on both the interest rate and stimulus programme.
Seemingly unaffected by the end of the 16-day U.S. government lockout, the demand for new mortgage remained subdued, while property prices rose slightly, suggesting investors are getting more worried about situation in the world's largest economy and showing unwillingness to invest into property.
Europe is finally gaining momentum. While Germany is still leading the recovery, other major economies are starting to show signs of improvement.