The cable remained around a two-week low on Tuesday following mixed data from the U.K. industrial sector, while markets were focusing on the MPC members hearing amid latest allegation of manipulation on the financial market.
On Monday banking analytic Dick Bove claimed the world's largest economy will fall into recession, as the rate of money flow and inflation will become a massive drag.
While the single currency shifted further away from it recent highs against the U.S. Dollar on Tuesday, the pair can receive another bullish impetus later this week.
It seems that the Alpine country began this year not on a high note, as exports slumped, inflation disappointed markets on both monthly and annual basis.
Japanese growth slowed to 0.7% in the final quarter, missing analysts' expectations for a 0.9% and slowing from third quarter's solid growth of 1%.
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?