Investing.com - The euro was lower against the U.S. dollar on Friday, falling for the third straight session as stronger-than-forecast U.S. jobs data and a deteriorating growth outlook for Germany hit demand for the single currency.
EUR/USD hit 1.2875 on Friday, the pair’s lowest since November 22; the pair subsequently consolidated at 1.2924 by close of trade, down 0.44% for the week.
The pair is likely to find support at 1.2824, the low of November 22 and resistance at 1.2973, Friday’s high.
The dollar initially strengthened against the euro after the U.S. Department of Labor said the economy added 146,000 jobs in November, beating forecasts for an increase of 93,000. The unemployment rate fell to 7.7%, an almost four year low from 7.9% in October.
But the euro subsequently pared back losses as the decline in the unemployment rate was attributed to more people dropping out of the labor force, while previous month’s gain of 171,000 was revised down to 138,000.
The euro came under pressure earlier in the session after Germany’s Bundesbank cut its forecast for growth in 2013 to just 0.4% from 1.6% previously and warned that the financial crisis in the euro zone will have a larger impact on the bloc’s largest economy.
The euro weakened broadly on Thursday after European Central Bank President Mario Draghi said policymakers had discussed a rate cut and slashed forecasts for economic growth and inflation at the central bank’s post-policy meeting press conference
The ECB left rates unchanged at 0.75%, in a widely expected decision.
Final data on Thursday showed that the euro zone economy contracted by 0.1% in the third quarter, unchanged from the preliminary estimate and confirming a recession after a 0.2% contraction in the previous quarter.
On Friday, ECB Governing Council member Jozef Makuch said the bank may cut rates in 2013 if the euro zone economy does not significantly improve.
On Saturday, U.S. President Barack Obama said he was ready to work with Republicans on a plan to avoid the automatic spending cuts and tax hikes due to take effect on January 1, which threaten to derail the U.S. economic recovery.
In the week ahead, investors will be focusing on the outcome of the Federal Reserve’s policy meeting on Wednesday, amid expectations that policymakers will continue to pursue a policy of monetary easing in order to support the U.S. economic recovery.
Market participants will also be awaiting the closely watched ZEW index of German economic sentiment as well as a summit meeting of European Union leaders.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 10
In the euro zone, France and Italy are to release official data on industrial production, a leading indicator of economic health. The euro zone is also to release data on investor confidence.
Tuesday, December 11
In the euro zone, the ZEW Institute of Economic Research is to release its closely watched index of German economic sentiment.
Later Monday, the U.S. is to publish a government report on the trade balance, the difference in value between imports and exports.
Wednesday, December 12
The euro zone is to release official data on industrial production, while Spain is to hold an auction of 10-year government bonds.
In the U.S., the Federal Reserve is to announce the federal funds rate. The announcement is to be accompanied by the bank’s rate statement and followed by a press conference with Chairman Ben Bernanke to discuss the rate decision and the economic outlook.
The U.S. is also to release official data on import prices and crude oil inventories.
Thursday, December 13
European Union leaders are to hold the first day of a two day summit in Brussels, while the eurogroup of euro zone finance ministers are also to hold talks in Brussels.
Meanwhile, the ECB is to release its monthly bulletin, which contains insights into the economic outlook from the bank’s perspective.
The U.S. is to produce government data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity, as well as data on producer price inflation and the weekly government report on initial jobless claims.
Friday, December 14
The euro zone is to release preliminary data on services and manufacturing sector activity, while Germany and France are to also to publish individual reports. The euro zone is also to release official data on consumer inflation, which accounts for the majority of overall inflation.
Meanwhile, EU leaders are to hold the second day of a two-day summit meeting in Brussels.
The U.S. is to round up the week with official data on consumer inflation, the capacity utilization rate, industrial production and preliminary data on manufacturing activity.
EUR/USD hit 1.2875 on Friday, the pair’s lowest since November 22; the pair subsequently consolidated at 1.2924 by close of trade, down 0.44% for the week.
The pair is likely to find support at 1.2824, the low of November 22 and resistance at 1.2973, Friday’s high.
The dollar initially strengthened against the euro after the U.S. Department of Labor said the economy added 146,000 jobs in November, beating forecasts for an increase of 93,000. The unemployment rate fell to 7.7%, an almost four year low from 7.9% in October.
But the euro subsequently pared back losses as the decline in the unemployment rate was attributed to more people dropping out of the labor force, while previous month’s gain of 171,000 was revised down to 138,000.
The euro came under pressure earlier in the session after Germany’s Bundesbank cut its forecast for growth in 2013 to just 0.4% from 1.6% previously and warned that the financial crisis in the euro zone will have a larger impact on the bloc’s largest economy.
The euro weakened broadly on Thursday after European Central Bank President Mario Draghi said policymakers had discussed a rate cut and slashed forecasts for economic growth and inflation at the central bank’s post-policy meeting press conference
The ECB left rates unchanged at 0.75%, in a widely expected decision.
Final data on Thursday showed that the euro zone economy contracted by 0.1% in the third quarter, unchanged from the preliminary estimate and confirming a recession after a 0.2% contraction in the previous quarter.
On Friday, ECB Governing Council member Jozef Makuch said the bank may cut rates in 2013 if the euro zone economy does not significantly improve.
On Saturday, U.S. President Barack Obama said he was ready to work with Republicans on a plan to avoid the automatic spending cuts and tax hikes due to take effect on January 1, which threaten to derail the U.S. economic recovery.
In the week ahead, investors will be focusing on the outcome of the Federal Reserve’s policy meeting on Wednesday, amid expectations that policymakers will continue to pursue a policy of monetary easing in order to support the U.S. economic recovery.
Market participants will also be awaiting the closely watched ZEW index of German economic sentiment as well as a summit meeting of European Union leaders.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 10
In the euro zone, France and Italy are to release official data on industrial production, a leading indicator of economic health. The euro zone is also to release data on investor confidence.
Tuesday, December 11
In the euro zone, the ZEW Institute of Economic Research is to release its closely watched index of German economic sentiment.
Later Monday, the U.S. is to publish a government report on the trade balance, the difference in value between imports and exports.
Wednesday, December 12
The euro zone is to release official data on industrial production, while Spain is to hold an auction of 10-year government bonds.
In the U.S., the Federal Reserve is to announce the federal funds rate. The announcement is to be accompanied by the bank’s rate statement and followed by a press conference with Chairman Ben Bernanke to discuss the rate decision and the economic outlook.
The U.S. is also to release official data on import prices and crude oil inventories.
Thursday, December 13
European Union leaders are to hold the first day of a two day summit in Brussels, while the eurogroup of euro zone finance ministers are also to hold talks in Brussels.
Meanwhile, the ECB is to release its monthly bulletin, which contains insights into the economic outlook from the bank’s perspective.
The U.S. is to produce government data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity, as well as data on producer price inflation and the weekly government report on initial jobless claims.
Friday, December 14
The euro zone is to release preliminary data on services and manufacturing sector activity, while Germany and France are to also to publish individual reports. The euro zone is also to release official data on consumer inflation, which accounts for the majority of overall inflation.
Meanwhile, EU leaders are to hold the second day of a two-day summit meeting in Brussels.
The U.S. is to round up the week with official data on consumer inflation, the capacity utilization rate, industrial production and preliminary data on manufacturing activity.