Investing.com – Last week saw the euro rally to a near four-month high against the U.S. dollar, after the European Central Bank said that it may raise interest rates next month while rising oil prices weighed on the greenback.
EUR/USD hit 1.4006 on Friday, the pair’s highest since November 8; the pair subsequently consolidated at 1.3985 by close of trade, jumping 1.63% over the week.
The pair is likely to find support at 1.3832, Thursday’s low and resistance at 1.4084, the high of November 8.
Speaking on Thursday, after the ECB’s policy setting meeting, the bank’s President Jean-Claude Trichet said, ‘‘an increase in interest rates at our next policy meeting is possible’’.
The comments came after the bank’s Governing Council held its official cash rate at 1%, where it has been since May 2009.
‘‘The information which has become available since our meeting on 3 February 2011 indicates a rise in inflation, largely reflecting higher commodity prices,’’ Mr. Trichet said. ‘‘Strong vigilance is warranted with a view to containing upside risks to price stability,’’ he added.
Meanwhile, on Friday, the U.S. Department of Labor said that employers added 192,000 jobs in February, the most since May, surpassing expectations for an increase of 180,000. The unemployment rate unexpectedly dipped to 8.9%, the lowest since April 2009, from 9.0% in January.
The data, while better-than-expected, disappointed some investors who see strong U.S. jobs growth as necessary for the Federal Reserve to end its second round of quantitative easing and raise interest rates.
The dollar was also hit as continued unrest in North Africa and the Middle East pushed oil prices higher. Crude oil for April delivery rose as much as 7.5% last week to USD105.17 a barrel in New York, the highest level since September 2008, amid concerns over a disruption to supplies.
In the week ahead, the U.S. is to release official data on retail sales for February as well as the University of Michigan Consumer Sentiment preliminary reading for March. Meanwhile, European leaders are to gather for a European Union summit meeting.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 7
In the euro zone, ECB President Jean-Claude Trichet is to speak at a public engagement. His comments will be closely watched for clues to the future direction of monetary policy. Also Monday, the Sentix research institute is to publish a report on investor confidence in the euro zone.
Later in the day, the U.S. is to publish official data on consumer credit, which is closely correlated with consumer confidence.
Tuesday, March 8
In the euro zone, Germany is to publish official data on factory orders, a leading indicator of production, while France is to publish government data on its trade balance, the difference in value between imported and exported goods and services over the month. Also Tuesday, the U.S. is to publish a report on economic optimism
Wednesday, March 9
Germany is to publish official data on industrial production, a leading indicator of economic health while the U.S. is to publish a government report on crude oil stockpiles.
Thursday, March 10
The U.S. is to publish a key weekly report on initial jobless claims, the nation’s earliest employment data. The country is also to publish a report on the trade balance, the difference in value between imported and exported goods and services over the month.
In the euro zone, France is to publish data on industrial production while the ECB is to publish its monthly bulletin, which contains a detailed analysis of current and future economic conditions.
Friday, March 11
The U.S. is to round up the week with government data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity. The nation is also to publish a report on business inventories, while the University of Michigan is to produce preliminary data on consumer sentiment and inflation expectations.
In the euro zone, Germany is to release final data on consumer price inflation as well as a report on wholesale prices, while the European Union economic summit is to begin in Brussels.
EUR/USD hit 1.4006 on Friday, the pair’s highest since November 8; the pair subsequently consolidated at 1.3985 by close of trade, jumping 1.63% over the week.
The pair is likely to find support at 1.3832, Thursday’s low and resistance at 1.4084, the high of November 8.
Speaking on Thursday, after the ECB’s policy setting meeting, the bank’s President Jean-Claude Trichet said, ‘‘an increase in interest rates at our next policy meeting is possible’’.
The comments came after the bank’s Governing Council held its official cash rate at 1%, where it has been since May 2009.
‘‘The information which has become available since our meeting on 3 February 2011 indicates a rise in inflation, largely reflecting higher commodity prices,’’ Mr. Trichet said. ‘‘Strong vigilance is warranted with a view to containing upside risks to price stability,’’ he added.
Meanwhile, on Friday, the U.S. Department of Labor said that employers added 192,000 jobs in February, the most since May, surpassing expectations for an increase of 180,000. The unemployment rate unexpectedly dipped to 8.9%, the lowest since April 2009, from 9.0% in January.
The data, while better-than-expected, disappointed some investors who see strong U.S. jobs growth as necessary for the Federal Reserve to end its second round of quantitative easing and raise interest rates.
The dollar was also hit as continued unrest in North Africa and the Middle East pushed oil prices higher. Crude oil for April delivery rose as much as 7.5% last week to USD105.17 a barrel in New York, the highest level since September 2008, amid concerns over a disruption to supplies.
In the week ahead, the U.S. is to release official data on retail sales for February as well as the University of Michigan Consumer Sentiment preliminary reading for March. Meanwhile, European leaders are to gather for a European Union summit meeting.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 7
In the euro zone, ECB President Jean-Claude Trichet is to speak at a public engagement. His comments will be closely watched for clues to the future direction of monetary policy. Also Monday, the Sentix research institute is to publish a report on investor confidence in the euro zone.
Later in the day, the U.S. is to publish official data on consumer credit, which is closely correlated with consumer confidence.
Tuesday, March 8
In the euro zone, Germany is to publish official data on factory orders, a leading indicator of production, while France is to publish government data on its trade balance, the difference in value between imported and exported goods and services over the month. Also Tuesday, the U.S. is to publish a report on economic optimism
Wednesday, March 9
Germany is to publish official data on industrial production, a leading indicator of economic health while the U.S. is to publish a government report on crude oil stockpiles.
Thursday, March 10
The U.S. is to publish a key weekly report on initial jobless claims, the nation’s earliest employment data. The country is also to publish a report on the trade balance, the difference in value between imported and exported goods and services over the month.
In the euro zone, France is to publish data on industrial production while the ECB is to publish its monthly bulletin, which contains a detailed analysis of current and future economic conditions.
Friday, March 11
The U.S. is to round up the week with government data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity. The nation is also to publish a report on business inventories, while the University of Michigan is to produce preliminary data on consumer sentiment and inflation expectations.
In the euro zone, Germany is to release final data on consumer price inflation as well as a report on wholesale prices, while the European Union economic summit is to begin in Brussels.