The US GDP for the fourth quarter was the key event last Friday (1,0% against the forecasted 0,4%). Earlier, the dollar lost ground, despite the durable goods orders positive release. The index jumped by 1.8% after falling by 1.2% in December.
Last Friday the G20 summit started its work in Shanghai. The problems with China, monetary policies coordination as well as world economy stimulation will be discussed in the meeting.
In economic news, German Finance Minister Schaeuble said in his speech that the space for monetary policy seems to be exhausted. According to him it was necessary to continue applying the financial regulation and to make the market less volatile. He also supported the idea to continue structural reforms. The pair euro/dollar sharply fell.
The main drivers for the pair GBP/USD were: Brexit and the British regulator's current monetary position. The pound reached seven-year lows last week. The currency weakening happened after some new forecasts, according to which the British currency might fall if the British citizens would vote for the country's exit from the EU in June. According to the opinion polls 43% of the population insisted on the necessity of such a decision. After a slight growth the pair pound/dollar decreased to new minimums on Friday.
The Bank of Japan continues to deny its plan to lower the current exchange rate. The BOJ governor Kuroda said that they did not plan to soften the monetary policy to weaken the yen. According to Mr. Kiuchi from the Board of Directors: an intervention will be an option if the market becomes volatile. The pair dollar/yen strengthened.