Investing.com – Last week saw the euro close higher against the U.S. dollar for the first week in month after the European Central Bank intervened to curb the spread of the sovereign debt crisis which threatened to engulf the euro zone.
EUR/USD hit 1.2968 on Tuesday, the pair’s lowest since September 16; the pair subsequently consolidated at 1.3412 by close of trade on Friday, advancing 0.97% over the week.
The pair is likely to find support at 1.3192, last Friday’s low and resistance at 1.3632, the high of November 23.
On Wednesday, the single currency reversed a 2-day decline amid speculation the ECB would take fresh steps at its meeting Thursday to stem debt-crisis contagion and as data showed manufacturing expanded in China, the U.S. and Europe.
On Thursday, ECB President, Jean-Claude Trichet, extended special liquidity measures which were due to be phased out early next year. The central bank also purchased Irish, Portuguese and Greek government debt, easing market fears over sovereign debt default.
The ECB also left its main interest rate unchanged at 1%, as expected. Mr. Trichet said that the rate was "appropriate" given "contained" inflationary pressures.
The euro extended its rally Friday after Labor Department data showed U.S. non-farm payrolls rose 39,000 last month, much weaker than expectations for 140,000 new jobs. The unemployment rate also increased to 9.8%, close to a 26-year high.
Next week, the U.S. is to release key weekly data on initial jobless claims, as well as a report on the country’s trade balance and preliminary data on consumer sentiment. Meanwhile, Federal Reserve Chairman, Ben Bernanke, is to appear in a televised interview.
In the euro zone, Germany is to publish data on industrial production and factory orders.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 6
In the U.S., Federal Reserve Chairman, Ben Bernanke is due to speak about monetary policy in an interview to be aired on CBS. The interview was given a week earlier.
In the euro zone, research group, Sentix is to publish data on investor confidence, a leading indicator of economic health.
Tuesday, December 7
In the euro zone, Germany is to produce official data on factory orders, a leading indicator of production.
Also Tuesday, the U.S. is to publish the IBD/TIPP index of economic optimism while later in the day the country is to publish official data on consumer credit.
Wednesday, December 8
In the euro zone, Germany and France are to publish official data on their trade balances, the difference in value between imports and exports over the month. Germany is also to publish data on industrial production, a leading indicator of economic health.
Also Wednesday, the U.S. is to release official data on crude oil inventories.
Thursday, December 9
In the euro zone, France is to publish final data on non-farm payrolls, while Germany is to release a final report on consumer price inflation. Later in the day, the European Central Bank is to publish its monthly bulletin, which provides detailed analysis of current and future economic conditions from the bank's viewpoint.
Meanwhile, the U.S. is to produce key weekly data on initial jobless claims, a leading indicator of economic health, as well as reports on wholesale inventories and natural gas storage.
Friday, December 10
In the euro zone, France and Italy are to publish data on industrial production while Germany is to release a report on wholesale prices, a leading indicator of consumer inflation.
Meanwhile, the U.S. is to round up the week with official data on its trade balance, federal budget balance and import prices. The country is also set to publish preliminary data from the University of Michigan on consumer sentiment and inflation expectations.
EUR/USD hit 1.2968 on Tuesday, the pair’s lowest since September 16; the pair subsequently consolidated at 1.3412 by close of trade on Friday, advancing 0.97% over the week.
The pair is likely to find support at 1.3192, last Friday’s low and resistance at 1.3632, the high of November 23.
On Wednesday, the single currency reversed a 2-day decline amid speculation the ECB would take fresh steps at its meeting Thursday to stem debt-crisis contagion and as data showed manufacturing expanded in China, the U.S. and Europe.
On Thursday, ECB President, Jean-Claude Trichet, extended special liquidity measures which were due to be phased out early next year. The central bank also purchased Irish, Portuguese and Greek government debt, easing market fears over sovereign debt default.
The ECB also left its main interest rate unchanged at 1%, as expected. Mr. Trichet said that the rate was "appropriate" given "contained" inflationary pressures.
The euro extended its rally Friday after Labor Department data showed U.S. non-farm payrolls rose 39,000 last month, much weaker than expectations for 140,000 new jobs. The unemployment rate also increased to 9.8%, close to a 26-year high.
Next week, the U.S. is to release key weekly data on initial jobless claims, as well as a report on the country’s trade balance and preliminary data on consumer sentiment. Meanwhile, Federal Reserve Chairman, Ben Bernanke, is to appear in a televised interview.
In the euro zone, Germany is to publish data on industrial production and factory orders.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 6
In the U.S., Federal Reserve Chairman, Ben Bernanke is due to speak about monetary policy in an interview to be aired on CBS. The interview was given a week earlier.
In the euro zone, research group, Sentix is to publish data on investor confidence, a leading indicator of economic health.
Tuesday, December 7
In the euro zone, Germany is to produce official data on factory orders, a leading indicator of production.
Also Tuesday, the U.S. is to publish the IBD/TIPP index of economic optimism while later in the day the country is to publish official data on consumer credit.
Wednesday, December 8
In the euro zone, Germany and France are to publish official data on their trade balances, the difference in value between imports and exports over the month. Germany is also to publish data on industrial production, a leading indicator of economic health.
Also Wednesday, the U.S. is to release official data on crude oil inventories.
Thursday, December 9
In the euro zone, France is to publish final data on non-farm payrolls, while Germany is to release a final report on consumer price inflation. Later in the day, the European Central Bank is to publish its monthly bulletin, which provides detailed analysis of current and future economic conditions from the bank's viewpoint.
Meanwhile, the U.S. is to produce key weekly data on initial jobless claims, a leading indicator of economic health, as well as reports on wholesale inventories and natural gas storage.
Friday, December 10
In the euro zone, France and Italy are to publish data on industrial production while Germany is to release a report on wholesale prices, a leading indicator of consumer inflation.
Meanwhile, the U.S. is to round up the week with official data on its trade balance, federal budget balance and import prices. The country is also set to publish preliminary data from the University of Michigan on consumer sentiment and inflation expectations.