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Forex - EUR/USD weekly outlook: September 20-24

Published 09/19/2010, 11:51 AM
EUR/USD
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Investing.com – Last week saw the euro fall from a 5-week high against the U.S. dollar on Friday, as risk appetite waned amid fresh fears over the euro zone sovereign debt crisis.

EUR/USD hit 1.3158 on Friday, the pair's highest since August 11; the pair subsequently consolidated at 1.3047, by close of trade, jumping 3.09% over the week.

The pair is likely to find support at 1.2975, last Thursday's low and resistance at 1.3185, the high of August 11.

On Friday, Ireland's borrowing costs soared to record highs after the country's finance minister Brian Lenihan denied reports that the country would be forced to seek assistance from the International Monetary Fund. Portugal and Greece also saw borrowing costs escalate following the reports.

An IMF spokeswoman also said on Friday that the IMF didn't see Ireland needing any financial assistance from the institution. 

Next week, the U.S. Federal Reserve is to announce its benchmark interest rate. The U.S. is also to release several reports on the housing sector as well as a weekly report on initial jobless claims.

The country is also to release key data on manufacturing production while Federal Reserve chairman Ben Bernanke is to speak at a public engagement.

Meanwhile, the euro zone is to release a key report on German business climate. The 16-nation region is also to release preliminary data on the manufacturing and service sectors.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect EUR/USD.

Monday, September 20

The U.S. is to begin the week by publishing industry data on home sales, a leading indicator of economic health.

Elsewhere, Italy is to publish data on its trade balance.

Tuesday, September 21

The U.S. Federal Reserve is to announce its benchmark interest rate. The announcement will be followed by the release of the closely watched rate statement, which discusses economic outlook.

The U.S. is also to release key data on building permits and housing starts, leading indicators of growth in the construction sector.

Wednesday, September 22

The euro zone is to publish data on industrial new orders, a leading indicator of manufacturing production, as well as data on consumer confidence.

Thursday, September 23

The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health, as well as data on existing home sales. The country is also due to publish an index of leading economic indicators, designed to predict the future direction of the economy.

Also Thursday, Germany, France and the wider euro zone are to publish preliminary data on manufacturing and service sector growth.

Friday, September 24

The U.S. is to end the week by producing key data on durable goods orders, a leading indicator of manufacturing production. The country is also to produce data on new home sales, a leading indicator of growth in the housing sector.

Later in the day, Federal Reserve Chairman Ben Bernanke is expected to deliver a speech on the U.S. economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy.

In the euro zone, the Ifo Institute for Economic Research is to release data on German business climate.

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