Investing.com - The euro gained ground against the broadly weaker dollar on Friday as weak U.S. data added to concerns over the outlook for the recovery, curbing expectations for higher interest rates.
EUR/USD was up 0.48% to 1.0874 in late trade, to end the week with gains of 0.61%.
The dollar weakened after the Commerce Department reported that orders for durable goods, excluding aircraft, fell 0.5% in March, after a downwardly revised 2.2% drop in February.
The headline figure rose 4.0%, beating expectations for a 0.6% gain, but investors focused on underlying weakness in the report.
The data came after recent weak reports on home sales, retail sales and industrial production, adding to signs of a slowdown in economic growth since the start of the year.
The weak data added to pressure on the dollar which has been hit as investors pushed back expectations on the timing of an initial rate hike by the Federal Reserve.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last down to 97.07 late Friday. The index ended the week down 0.62%, its second consecutive monthly decline.
Elsewhere, the euro dipped against the yen, with EUR/JPY at 129.33 in late trade, off two-week highs of 130.10.
The euro slid as concerns over Greece’s debt negotiations continued. Euro area finance ministers said Friday that Greece must present a full economic reform plan by early May in order to access any further funding.
In the week ahead investors will be looking to Wednesday’s Fed statement for clues on the possible timing of a rate increase. Investors will also be focusing on Wednesday’s preliminary reading on U.S. first quarter growth as well as reports on inflation, consumer confidence and manufacturing.
Thursday’s preliminary data on euro zone inflation will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday as there are no relevant events on this day.
Tuesday, April 28
The U.S. is to release private sector data on consumer confidence.
Wednesday, April 29
In the euro area, German y is to release preliminary data on consumer inflation.
The U.S. is to publish preliminary data on first quarter economic growth in addition to a report on pending home sales.
Later in the day the Federal Reserve is to announce its monetary policy decision and publish its rate statement.
Thursday, April 30
Germany is to report on retail sales and unemployment, while Spain is to release data on inflation and economic growth. The euro zone is also to release preliminary data on consumer prices and the unemployment rate.
The U.S. is to publish data on initial jobless claims.
Friday, May 1
In Europe markets in France, Italy, Germany and Switzerland are to remain shut for holidays.
The U.S. is to round up the week with a report for the Institute of Supply Management on Manufacturing activity and revised data on consumer sentiment.