The AUD was seen extending gains for the second week, this time gaining 1.87%.

The performance shows strong acceleration in the currency which was previously trading weaker against the USD.

The CAD was somewhat subdued last week rising just 0.97% after a 1.02% increase previously, however the CAD is expected to remain strong in the week ahead.

The CHF was bullish but the momentum eased last week. CHF gained just 0.97% on the week after rising 1.53% previously.

The EUR saw a bullish week as price action rose 1.06% on the week. This comes following a 0.64% increase in the previous week. The data also indicates the USD taking a breather leading to gains from other currencies.

Momentum in the GBP eased last week as the currency increased just 0.07% on the week after a 1.10% solid gain the week before.

JPY was the weakest currency losing 0.47% last week. However, the performance indicates a risk on sentiment in the market

NOK extended 1.23% last week up from 2.27% gains the week before

NZD was also seen accelerating last week rising 1.95%. This comes after a modest 0.20% increase previously and indicates a possible turn around in the currency.

Market Highlights from last week

Bank of Japan – Interest Rate

The Bank of Japan held its monetary policy meeting last week.

As widely expected, the central bank kept its interest rates unchanged at -0.10% and its QE purchases steady.

The decision to hold policy steady came a day before the Japanese Prime Minister; Shinzo Abe won an election bid.

Having won with a comfortable majority, Abe now becomes Japan’s longest serving prime minister.

The BoJ is said to have already stealthily moving into tightening monetary policy.

UK Inflation

Economic data from the UK continued over last week.

Inflation for August showed that headline consumer prices advanced 2.7% on an annualized basis.

Core inflation rate was also higher, rising 2.1% on the year in August.

The data beat a conservative est imate and showed inflation rising from the month before.

WTI Crude Oil

Crude oil prices were trending higher last week.

The jump came on the drawdown in U.S. commercial stockpiles.

Furthermore, according to news reports, Saudi Arabia reportedly preferred a $70 – $80 a barrel oil price which boosted price higher.

The OPEC leaders and Russia are expected to meet this weekend in Algiers to discuss the supply gap due to Iran’s sanctions.

However, no concrete decision is expected at this weekend’s meeting.

Norway Interest Rate

The Norges bank was seen hiking interest rates at its monetary policy meeting last week.

Norway’s interest rates were hiked from 0.50% which was a record low to 0.75%.

However, the markets are expecting to see this as a one off rate hike.

There are no clear indicators that Norges bank would move to a tightening cycle hereafter.

The NOK dropped after news of the rate hike.

With its first hike since March 2011, Norway joins a trend for tighter monetary policy in Europe.

UK Brexit

Brexit continued to remain in the headlines last week.

The British Prime minister, Theresa May was seen meeting her EU counterparts at an information meeting in Salzburg, Austria last week.

However, EU officials maintained a hard line.

The meeting came at the back of the IMF warning that a no-deal Brexit could potential harm UK’s growth.

New Zealand GDP

New Zealand’s second quarter GDP was released last week.

Data from Statistics New Zealand showed that GDP advanced 1.0% in the three months ending June 2018.

This beat estimates of a 0.8% increase.

New Zealand’s current account deficit also declined in the second quarter underlining the strong GDP performance.

The GDP data comes ahead of this week’s RBNZ monetary policy meeting.