Britain's economy is now expected to reach prosperity in the coming years and, perhaps, even overtake German economy.
A slew of important fundamental data form the world's largest economy, including pending home sales, durable goods, consumer sentiment as well as the second estimates for the first-quarter GDP will capture the attention this week.
It will be several painful days for the shared currency, as EU election results can affect ECB's decision making process, while central bank's top brass have already decamped to Sintra to brainstorm on new ways to use monetary policy.
The Japanese Yen fell versus the U.S. Dollar, trading at 102.04, up 0.07%, after a release of the April 30 board meeting minutes showed that there is still a continued minority that disagree concerning growth and inflation outlook.
A day, when the Bank of England will increase the base rate from its all-time low, is looming, still providing the central bank with some time to communicate and prepare markets and public for a change in the monetary stance.
The Canadian Dollar was little changed versus its U.S. counterpart immediately after the nation's April inflation data was released, which reached the Bank of Canada's target for the first time in two years, driven by higher energy costs.
Sales of new U.S. homes rebounded in April after two consecutive months of declines, and the stock of houses on the market rose to the highest level in three and a half years, but analysts still do not think that the market is gaining momentum.
Despite the fact that German manufacturing PMI at 52.9 and services index at 56.4 are still pointing at the resilience of Europe's locomotive, business confidence in Europe's number one economy fell more than expected amid signs that growth in the German economy will slow in the second quarter.
Dovish RBA, worrying notes from the S&P have all weighted on the performance of the Aussie.
Thursday provided a relief for those traders, who are still holding long positions on the AUD/USD pair (50% of Dukascopy traders), as stronger-than-expected Chinese manufacturing and higher inflation expectations in Australia pushed the Aussie higher.
During the latest monetary policy meeting the central bank kept the monetary policy unchanged and raised its outlook on capital expenditure.
Everyone is waiting for another upbeat report from the U.K. to heat up speculations the central bank should raise interest rates as soon as possible.
The latest FOMC meeting showed that the end of the quantitative easing was a major talking point.
It seems that the 18-nation's bloc's economy has found a solid footing in its services sector, as activity in manufacturing sector slowed further, adding more pressure on the ECB to act in June.
It seems that recently released budget will be a much larger drag on the Oz economy that is was thought earlier.
The Japanese Yen posted further gains versus other major currencies on Wednesday, with USD/JPY trading around 101.23, almost at the highest level in three months.
It was not difficult to predict stronger-than-expected retail sales figures from the U.K. on Wednesday, keeping in mind subdued inflation as well as later timing of Easter this year.
The U.S. Dollar advanced versus the Japanese Yen for the first time in six sessions, as the U.S. central bank's meeting showed policymakers will continue reducing its stimulus programme, with stock markets also reacting positively on the announcement.
Mario Draghi has been waving a loaded gun so often in the recent months, pledging to act, that some analysts even believe he is afraid of doing anything.
The Australian Dollar moved lower some 30 pips on Tuesday, pushed lower by RBA minutes as well as comments that suggested the currency will be weaker in the nearest future due to a decline in capital flows.
The greenback is still losing ground versus the Japanese Yen, which has already climbed 0.32%, while further appreciation can be a threat to the bullish trend carried from the previous year.
Following five consecutive months of falling inflation, the costs of living in the U.K. picked up, and what is more important, inflation rose above average estimates, as air and sea fares pushed the indicator higher.
The world's largest economy has almost stalled in the first quarter due to harsh weather conditions.
As it was expected, the most traded currency pair remained around 1.37-mark ahead of the FOMC meeting.