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Compared to a previous weeks, the GBP/USD currency cross was developing in a more bearish manner, even though it posted considerable gains and closed on Friday on a rather hopeful note. The pair opened on Monday in a calm environment 1.4768 mark, as markets began to turn their focus to the Federal Reserve's policy statement which was scheduled on Wednesday. Nevertheless, the Pound dropped to nearly five-year lows on Wednesday, after data showed that the UK unemployment rate remained unexpectedly unchanged in January, while the average UK earnings rose less-than-expected. The unemployment rate was at 5.7%, showing the lowest level since October 2008. At the same time, the number of people seeking jobless benefits fell 31.000, which is a smaller change, after a 39.400 decline a month earlier. Average earnings, in turn, grew less than expected, 1.8% instead of 2.2%. Moreover, according to the Monetary Policy Committee led by Governor Mark Carney, continued strength of the UK economy may stimulate the Pound to grow and thus, lead to deflation. By the end of the week the Cable held steady, as UK public sector borrowing data was positive, while sentiment on the Greenback remained vulnerable, due to the Federal Reserve's latest policy statement. The pair round up on Friday at 1.4959 level.
In course of this working week, the votes of Dukascopy Community members divided equally, as almost 50% of all predictions stay bearish and another 50% remain bullish. Meanwhile, traders expect, the Cable to close around the 1.4879 level this Friday. As for the economic news, both the UK and the US are to release reports on consumer inflation on Tuesday. Moreover, on Wednesday, the UK will announce private sector reports on mortgage approvals and retail sales. Meanwhile, the US is to round up the week with final data on fourth quarter economic growth
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