This week was overwhelmingly good for the Great Britain pound as the currency was the strongest on the Forex market. Commodity currencies also performed well, while other major currencies like the US dollar, the euro and the Japanese yen were among weakest.
Forecasters were right to some degree in their prediction that the past week would be important for the sterling. Yet they were wrong to expect bearishness from the currency, which has turned out to be the top performer over the week. As was expected, the Inflation Report proved to be a major driver behind the sterling’s moves and, while Mark Carney was defending the policy of low rates, speculations about an interest rate hike cemented the strength of the UK currency. Economic indicators, for the most part, were positive and added to the sterling’s upward momentum.
The Australian dollar was another strong currency this week with the help of China’s economic data, which overshadowed abysmal Australian employment. The US dollar was among the weakest due to both poor domestic reports and the general risk-positive traders’ sentiment.
GBP/USD surged from 1.6398 to 1.6745 (2 percent) this week. EUR/GBP sank from 0.8301 to 0.8179 and GBP/JPY climbed from 168.08 to 170.46 over the week.
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