The coming week follows one during which the euro plummeted to a 7-month low against the dollar, a decline spurred by persisting worries about Greece’s finances and the release on Friday of better-than-expected U.S. GDP data.
Trade closed on Friday after EUR/USD hit 1.3862, its lowest rate since July 9. The pair is likely to find short-term support at 1.3832, the low of July 8, and long-term support around 1.3748, the low of June 16.
EUR/USD is likely to find resistance at 1.4194, last week’s high.
Ahead of the coming week, Investing.com has compiled a list of key economic events likely to affect the pair.
Monday, Feb. 1
The week will start with the release of the euro zone Manufacturing Purchasing Managers' Index (PMI), a leading indicator of economic conditions that measures the activity level of purchasing managers in the manufacturing sector.
Later, the Institute for Supply Management will release its monthly U.S. Manufacturing Index, a key indicator of industrial activity.
Tuesday, Feb. 2
Data on monthly German retail sales will be released, offering a gauge of consumer spending in the euro zone’s largest economy.
The U.S. National Association of Realtors will then publish monthly data on pending home sales, a leading indicator of economic health, after last month’s figure fell by 16%.
Wednesday, Feb. 3
The financial information services company Markit Economics will publish the euro zone Services PMI, a key indicator of economic conditions that measures the activity of purchasing managers in the services sector.
The European Commission will then release its monthly report on retail sales, an important measure of consumer spending.
Also Wednesday, the latest ADP Non-Employment Change data will be released in the United States. This is an important gauge of labor market conditions in the private sector of the economy, and the latest ISM Non-Manufacturing PMI data.
Thursday, Feb. 4
The European Central Bank will make its interest rate announcement, after which ECB President Jean-Claude Trichet will give a press conference.
Also Thursday, the U.S. will publish new weekly Jobless Claims data, a gauge of labor market conditions, along with the Non-farm Productivity and Labor Costs Index.
Friday, Feb. 5
The U.S. Bureau of Labor Statistics will release its Non-Farm Payrolls and Employment Situation Report, an important indicator of economic health. The bureau will also announce the U.S. Unemployment Rate and Average Hourly Earnings.
Saturday, Feb. 6
The G7 meeting in Canada will discuss the state of the world economy; global adjustments, including currency exchange rates; financial sector regulatory reform; and trade and development.