Australian currency moved further away from the desired by the RBA level on Tuesday, as consumer confidence and business conditions improved.
Until Friday the loonie is likely to remain relatively calm, and the only driving factor will be growing concerns over emerging markets' currencies.
The Sterling weakened from its almost two-and-a-half year high against the U.S. Dollar on Tuesday after the report from ONS showed British economy expanded in line with analysts forecasts.
It seems plausible that companies and investors are not so confident about future prospects of the world's largest economy even despite bold comments from politicians and policymakers, who consider 2014 to become a ‘breakthrough' year for the economy.
This week's highlight will be Friday's report from the Eurostat that is likely to show no change in the unemployment rate in December, staying around a record high at 12.1%.
More than three decades ago central banks across the world used heavy handed tactics to smack currencies, making daily trading highly risky and unpredictable.
Amid debates the BoJ will not announce fresh stimulus any time soon the Yen managed to appreciate against the U.S. Dollar and push the pair down to 101.76.
British economy is in its best shape since 2007 and this week's report is likely to confirm that.
The world's largest economy probably slowed to 3.3% in the final quarter of 2013, from 4.1% in the third quarter.
The single currency moved above strong psychological level of 1.37 on Monday following a release of the German Ifo business climate, suggesting Europe's number one economy started this year on a high note.
The Canadian Dollar was in the highlight last week, as the USD/CAD soared to 1.1173– the highest level in more than four years, while EUR/CAD reached 1.5276– the highest since December 2009 as the Bank of Canada claimed for a weaker domestic currency.
The Canadian Dollar has been a target of debate last weeks as on the back of Bank of Canada comments USD/CAD soared to 1.1173– the highest level in more than four years.
The appropriate level of the Swiss Franc is one of the main priorities for the Swiss National Bank. In order to avoid Franc's further appreciation, the SNB imposed a cap against the Euro in September 2011.
The U.S. Dollar can become very attractive for traders this week especially on Wednesday and Thursday, taking into account FOMC statement and GDP report.
During the last five trading days the cable soared more than 270 pips, becoming one of the top performers on the back of stronger-than-expected labour report.
After a 150-pip rally on Thursday the most traded currency pair remained stable slightly below 1.37 level and as the profit-taking eased back to 1.367.
It seems that 2014 year will be a difficult one for Australian policymakers, who seek to revive growth in the resource-rich economy that is stuck in the transition phase.
A disappointing Canadian labour market report for December provoked a downside rally in the CAD-based currency pairs in the time for the New Year.
The Pound was poised to become one of this year's top performers taking into account the strength of Britain's economy.
The Euro benefited not only from stronger-than-expected data from Europe on Thursday, but also climbed higher on the back of weak manufacturing report, while U.S. jobless claims report provided no surprises.
The single currency rocketed on Thursday on the back of positive data from the 18-nation bloc that showed manufacturing and services sectors gained momentum in January, while current account surprisingly swelled in November.
The Australian Dollar remains at the "uncomfortably high" level, while domestic economy is struggling to build up steam amid waning investment in the mining sector.
Markets were little changed after the BoJ monetary policy statement that showed the central bank refrained from boosting its unprecedented stimulus programme further, saying the economy is on the way to reach a 2% inflation target as planned.
The unemployment rate plunged to 7.1% in December– the lowest since February 2009, while the number of people claiming jobless benefits sank by 24,000. Even though, this is not as much as analysts expected of a 32,000 drop, the latest data from the U.K. labour market is definitely reflecting the ongoing recovery.