Investing.com - The euro ended the week higher against the softer dollar on Friday, following lukewarm U.S. economic reports, including on economic growth, and cautious sounding comments by Federal Reserve Chair Janet Yellen.
EUR/USD was little changed at 1.089 late Friday and ended the week with gains of 0.6%.
Sentiment on the dollar was hit after data on Friday showed that the U.S. economy grew slightly less than forecast in the fourth quarter and another report showing that consumer sentiment deteriorated this month.
The Commerce Department reported that the U.S. economy expanded at an annual rate of 2.2% in the fourth quarter, unchanged from the preliminary estimate and below economists’ forecasts for an upward revision to 2.4%.
Another report showed that the final reading of the University of Michigan’s consumer sentiment index ticked down to 93.0 this month from a final reading of 95.4 in February.
The dollar remained subdued after Fed Chair Janet Yellen struck a cautious note on interest rates. In a speech on Friday, the Fed chief said a rate hike may be warranted later this year, but added that weakening inflation pressures could force the Fed to delay.
The speech echoed the Fed’s latest policy statement, released on March 18, which indicated that it may raise interest rates more gradually than markets had expected.
In the euro zone, Greece put forward new reform plans for approval late Friday, as part of a bailout extension review.
Officials from the European Union, the International Monetary Fund and the European Central Bank were to examine the measures after earlier proposals were not accepted.
Elsewhere, EUR/JPY was little changed at 129.73 late Friday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended the week down 0.66%, the second consecutive weekly decline.
In the week ahead, investors will be focusing the U.S. employment report for February, due out on Friday and Monday’s data on personal spending for further indications on the path of monetary policy.
Tuesday’s euro zone inflation report 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.
Monday, March 30
Japan is to publish preliminary data on industrial production.
In the euro zone, Germany and Spain are to release preliminary data on consumer price inflation.
The U.S. is to release reports on personal spending and pending home sales.
Tuesday, March 31
The euro zone is to release preliminary data on consumer inflation and the monthly employment report. Germany is to report on retail sales and the unemployment rate.
The U.S. is to release data on consumer confidence.
Wednesday, April 1
The U.S. is to release the ADP nonfarm payrolls report, which outlines private sector jobs growth, while the Institute of Supply Management is to release data on manufacturing activity.
Thursday, April 2
The U.S. is to release data on the trade balance, initial jobless claims and factory orders.
Friday, April 3
Markets in Australia, New Zealand, Europe, the U.K., U.S. and Canada will be closed for the Good Friday holiday.
The U.S. is to round up the week with what will be a closely watched government report on non-farm payrolls, the unemployment rate and average earnings.