The world's third largest economy logged bigger than expected current account surplus in September, on the back of strong income from investments made abroad, though, this optimistic data may mask the underlying problem of structural trade deficits.
Britain now is one of the fastest growing economies in the world and recent data from all key sectors- manufacturing, construction and services, are suggesting the U.K. would build up steam in the coming months, hence, the pace of growth is likely to accelerate.
The U.S. Dollar soared 0.61% against other major currencies during the last five trading days, while EUR/USD fell to 1.329 on Thursday.
While European policymakers are struggling to create a strong banking union, and conduct all the necessary stress tests to avoid another crisis, former head of the U.S. Federal Reserve Alan Greenspan pointed out that the whole region would be able to survive only after a formation of a political union.
Last week markets were surprised by Mario Draghi's decision to trim benchmark interest rate amid weak inflation and gloomy outlook, making the Euro the major underperformer. In contrast, the Kiwi was the main gainer, advancing 1.22% versus other major currencies during the last five trading days. Financial markets were mostly driven by the fundamental news, while this week is expected
Following the gloomy forecasts for the Eurozone from Mario Draghi, the Australian central bank shared pessimism after an unbelievingly disappointing quarterly statement on the monetary policy.
While Swiss policymakers are constantly monitoring EUR/CHF currency pair and are ready to defend the cap if needed, USD/CHF has been on the rise since October 25, penetrating strong resistance at 0.9177 and heading towards 0.9389.
During the last couple of months markets got overexcited about the U.K. economy, as a series of the reports indicated the recovery is gaining momentum.
Dollar extended Thursday's gains against the single currency on Friday after the data from the Bureau of Labor Statistics showed the economy created more jobs than initially was expected, while unemployment rate came in line with analysts' forecasts.
Traders were caught by surprise by the ECB rate decision, while after S&P cut France's credit rating by one notch, the single currency extended its decline versus other currencies.
Australian Dollar fell to 0.9465, hitting Tuesday's low after disappointing data from the Oz labour market. Australia's Dollar fell almost 0.5% versus both the U.S. Dollar and single currency, almost eroding Monday's gains.
October was a good month for Swiss policymakers, who seek a weaker Franc, as Swiss Franc depreciated 0.6% against the shared currency and 0.2% versus the U.S. Dollar.
As it was widely expected markets gone wild on Thursday, even though there was no surprises from the U.K. policymakers.
The U.S. economy grew at the fastest pace this year while households moderated their spending and businesses cut investments.
Financial markets were shocked on Thursday following the ECB press conference, after which the single currency plummeted to 1.329 against the greenback.
Following RBA's minutes that provided no surprise for markets, Wednesday's report from the Australian Bureau of Statistics showed positive tendency in trade sector.
Though Canadian economy sent mixed signals on Thursday, the loonie soared versus the greenback, hitting 1.0411.
The Pound moved further away from the strong psychological level of 1.6 against the U.S. Dollar on Wednesday, supported by strong factory output and a solid gain in property prices.
Before the September policy meeting analysts were betting Bernanke would announce the tapering of its stimulus programme, expecting a $15 reduction in monthly purchases.
The U.S. Dollar was weaker against the shared currency on Wednesday due to the upcoming ECB meeting, while the 17-nation economy is still sending mixed signals, suggesting the ongoing recovery is still fragile.
It was not a surprise that the Reserve Bank of Australia maintained its loose policy stance on Tuesday, keeping the benchmark interest rate at a half-century low of 2.5%, in a bid to revive the resource-rich economy from tis post-mining-boom woes.
Further evidence a cap on the Swiss Franc is still vital, occurred on Tuesday, as a report from the Swiss Federal Statistical Office showed that consumer prices fell both on a monthly and annual basis, putting more pressure on the Swiss National Bank to prevent deflation and risks of economic slowdown in the Alpine country.
The Pound soared against the Euro and U.S. Dollar after a fresh release of services PMI, showing activity accelerated at the fastest pace in 16 years last month, suggesting the U.K. is pulling away from the rest of Europe.
Service sector in the U.S. unexpectedly expanded in October, signalling that the biggest contributor to the nation's economy is overcoming the political impasse, which partially shut down the federal government.