While the cable is facing a strong resistance around 1.68, the outlook for the pair is still bullish, as fundamental data from the U.K. are speaking in favour of further economic strengthening, adding to signs the first rate hike can be made this year already.
American policymakers continue to surprise with their comments, as Fed Bank of Philadelphia President Charles Plosser provided some of the contradictive comments by saying bad weather became a massive drag on the labour market and damped economy's ability to create jobs in February.
Finally. Last week we predicted some of the European policymakers will start expressing their concerns about the strength of the single currency.
During the last week traders were able to earn more than 4% by investing in Bank of America, JP Morgan Chase & Co. and in palladium, as their prices soared 4.84%, 4.51% and 4.28%, respectively. When speaking about currencies, the most attractive pair was AUD/JPY that rocketed 2.74%, with Aussie rising 0.61% against other currencies, while Japanese Yen sank more
Australian currency was poised to become one of the top losers this year, as economy was supposed to stuck in transitions phase, while the analysts were making their bets on when the RBA will make another adjustment to its monetary policy.
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