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Forex - EUR/USD weekly outlook: August 10 - 14

Published 08/09/2015, 11:19 AM
Updated 08/09/2015, 02:19 PM
Euro pushes higher despite solid U.S. nonfarm report
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Investing.com - The euro moved higher against the dollar late Friday following the release of a solid U.S. jobs report for July as investors booked profits following the greenback’s recent run higher.

EUR/USD was last up 0.37% for the day at 1.0964 after falling to lows of 1.0856 immediately following the jobs data.

The Labor Department reported that the U.S. economy added 215,000 jobs last month, slightly lower than forecasts for an increase of 223,000, but still consistent with strong employment growth.

The unemployment rate remained unchanged at 5.3%, in line with expectations.

Hourly earnings, a component of the jobs report that the Federal Reserve has said must rise, ticked up 0.2%, also matching forecasts after stalling in the previous month.

The data was seen as underlining expectations for a near-term rate hike.

In the past three months the dollar has been boosted by investor expectations that the Federal Reserve will raise short term interest rates in the coming months, possibly as early as September.

On Tuesday, comments by Atlanta Fed President Dennis Lockhart fueled expectations for an imminent lift off after he said it would take a “significant deterioration in the economic picture” for him to not support a rate hike in September.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased to 97.66, after touching three-month highs of 98.42 earlier. The index ended the week with gains of 0.18%.

In the week ahead, investors will be looking to Thursday’s U.S. retail sales data for a further indication on the durability of the economic recovery. Speeches by Fed officials on Monday will also be in focus.

Elsewhere, the euro zone is to publish a flash estimate of second quarter economic growth on Friday.

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 Wednesday as there are no relevant events on this day.

Monday, August 10

Federal Reserve Governor Stanley Fischer and Atlanta Fed President Dennis Lockhart are to speak; their comments will be closely watched.

Tuesday, August 11

In the euro zone, the ZEW Institute is to report on German economic sentiment.

The U.S. is to release preliminary data on unit labor costs.

Thursday, August 13

The European Central Bank is to publish the minutes of its latest policy meeting.

The U.S. is to produce data on retail sales, initial jobless claims and import prices.

Friday, August 14

The euro zone is to publish preliminary data on second quarter economic growth as well as revised data on consumer inflation.

The U.S. is to release data on producer prices, industrial production and consumer sentiment to round up the week.

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