Investing.com – Last week saw the euro advance to a three-week high against the U.S. dollar, before paring gains on Friday, as risk appetite staged a slight recovery as crude oil prices stabilized.
EUR/USD hit 1.3837 on Friday, the pair’s highest since February 2; the pair subsequently consolidated at 1.3752 by close of trade, advancing 0.38% over the week.
The pair is likely to find support at 1.3649, Wednesday’s low and resistance at 1.3837, Friday’s high.
Earlier in the week, the U.S. dollar weakened broadly amid fears that the spike in oil prices, fuelled by worsening violence in Libya, could hit U.S. consumer spending and create a drag on the rate of global economic growth.
But on Friday, crude trimmed gains after Saudi Arabia, the U.S. and the International Energy Agency said they could compensate for a supply disruption, giving the greenback a boost.
Meanwhile, elections in Ireland weighed on the single currency, as uncertainty over the next government's stance on Ireland's debt package overshadowed expectations for euro zone interest rate hikes later in the year.
Also Friday, revised data released showed that fourth-quarter U.S. gross domestic product came in weaker-than-expected. The Commerce Department said GDP rose at an inflation-adjusted annual rate of 2.8%, less than the expected 3.3% gain.
In the week ahead, any further escalation of geopolitical tensions in North Africa and the Middle East could continue to drive oil prices higher while U.S. jobs data for February, due Friday, will also be a major focus for markets. Meanwhile, the European Central Bank is to announce its minimum bid rate.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 28
The U.S. is to kick off the week by releasing a flurry of data, with industry data on pending home sales as well as a report on manufacturing activity in the in the Chicago area. The U.S. is also to publish official data on personal consumption expenditure and consumer price inflation.
The euro zone is to release official data on consumer price inflation, which accounts for a majority of overall inflation.
Tuesday, March 1
In the U.S., the Chairman of the Federal Reserve, Ben Bernanke, is to testify on the semi-annual monetary policy report before the Senate Banking Committee, in Washington. His comments will be closely scrutinized for clues to the future possible direction of monetary policy. Meanwhile, the Institute for Supply Management is to publish a report on manufacturing activity.
In the euro zone, Germany is to publish official data on employment change, while the wider economic zone is to publish preliminary data on consumer price inflation as well as a report on the unemployment rate.
Wednesday, March 2
In the U.S., Ben Bernanke is to testify for a second day before the Senate Banking Committee. Meanwhile, the Fed is to publish its Beige Book, which contains data policymakers examined before making their interest rate decision.
The country is also to publish data on private sector payrolls compiled by payroll processing firm ADP, which heads up government data by two days, as well as a report on crude oil stockpiles.
Thursday, March 3
The U.S. is to release its key weekly report on initial jobless claims, a leading indicator of overall economic health. The country is also to publish revised data on nonfarm productivity, as well as a report on service sector activity, while Fed chair Ben Bernanke is to speak at a public engagement.
In the euro zone, the ECB is to announce its minimum bid rate. The announcement will be followed by a closely watched press conference to discuss the rate decision. Also Thursday, the euro zone is to publish official data on GDP, the broadest measure of economic activity and the primary gauge of the economy's health.
Meanwhile, both Germany and the euro zone are to release data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Friday, March 4
The U.S. is to round up the week with a closely watched report on non-farm payrolls, a leading indicator of job creation. The country is also to publish government data on the rate of unemployment, average hourly earnings as well as factory orders.
Later in the day, ECB President, Jean-Claude Trichet is to speak at a public engagement; his comments will be closely watched for any clues to the future possible direction of monetary policy.
EUR/USD hit 1.3837 on Friday, the pair’s highest since February 2; the pair subsequently consolidated at 1.3752 by close of trade, advancing 0.38% over the week.
The pair is likely to find support at 1.3649, Wednesday’s low and resistance at 1.3837, Friday’s high.
Earlier in the week, the U.S. dollar weakened broadly amid fears that the spike in oil prices, fuelled by worsening violence in Libya, could hit U.S. consumer spending and create a drag on the rate of global economic growth.
But on Friday, crude trimmed gains after Saudi Arabia, the U.S. and the International Energy Agency said they could compensate for a supply disruption, giving the greenback a boost.
Meanwhile, elections in Ireland weighed on the single currency, as uncertainty over the next government's stance on Ireland's debt package overshadowed expectations for euro zone interest rate hikes later in the year.
Also Friday, revised data released showed that fourth-quarter U.S. gross domestic product came in weaker-than-expected. The Commerce Department said GDP rose at an inflation-adjusted annual rate of 2.8%, less than the expected 3.3% gain.
In the week ahead, any further escalation of geopolitical tensions in North Africa and the Middle East could continue to drive oil prices higher while U.S. jobs data for February, due Friday, will also be a major focus for markets. Meanwhile, the European Central Bank is to announce its minimum bid rate.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 28
The U.S. is to kick off the week by releasing a flurry of data, with industry data on pending home sales as well as a report on manufacturing activity in the in the Chicago area. The U.S. is also to publish official data on personal consumption expenditure and consumer price inflation.
The euro zone is to release official data on consumer price inflation, which accounts for a majority of overall inflation.
Tuesday, March 1
In the U.S., the Chairman of the Federal Reserve, Ben Bernanke, is to testify on the semi-annual monetary policy report before the Senate Banking Committee, in Washington. His comments will be closely scrutinized for clues to the future possible direction of monetary policy. Meanwhile, the Institute for Supply Management is to publish a report on manufacturing activity.
In the euro zone, Germany is to publish official data on employment change, while the wider economic zone is to publish preliminary data on consumer price inflation as well as a report on the unemployment rate.
Wednesday, March 2
In the U.S., Ben Bernanke is to testify for a second day before the Senate Banking Committee. Meanwhile, the Fed is to publish its Beige Book, which contains data policymakers examined before making their interest rate decision.
The country is also to publish data on private sector payrolls compiled by payroll processing firm ADP, which heads up government data by two days, as well as a report on crude oil stockpiles.
Thursday, March 3
The U.S. is to release its key weekly report on initial jobless claims, a leading indicator of overall economic health. The country is also to publish revised data on nonfarm productivity, as well as a report on service sector activity, while Fed chair Ben Bernanke is to speak at a public engagement.
In the euro zone, the ECB is to announce its minimum bid rate. The announcement will be followed by a closely watched press conference to discuss the rate decision. Also Thursday, the euro zone is to publish official data on GDP, the broadest measure of economic activity and the primary gauge of the economy's health.
Meanwhile, both Germany and the euro zone are to release data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Friday, March 4
The U.S. is to round up the week with a closely watched report on non-farm payrolls, a leading indicator of job creation. The country is also to publish government data on the rate of unemployment, average hourly earnings as well as factory orders.
Later in the day, ECB President, Jean-Claude Trichet is to speak at a public engagement; his comments will be closely watched for any clues to the future possible direction of monetary policy.