Investing.com – Last week saw the euro close lower against the U.S. dollar for the second consecutive week, amid ongoing speculation over the scope and potential impact of expected monetary easing by the U.S. Federal Reserve.
EUR/USD hit 1.3733 on Tuesday, the pair’s lowest since October 20; the pair subsequently consolidated at 1.3945 by close of trade on Friday, shedding 0.18% over the week.
The pair is likely to find support at 1.3733, last Wednesday's low and resistance at 1.4097, last Monday's high.
The euro closed higher on the day on Friday, erasing losses following the release of significantly weaker-than-expected data on German retail sales. Official data showed that German retail sales fell by a seasonally adjusted 2.3% in September, after falling by a revised 0.4% in August. Analysts had expected Germany’s retail sales to rise by 0.5% in September.
Meanwhile, U.S. economic data released Friday seemed to underline expectations that the Federal Reserve will intervene to support the U.S. economic recovery, following next weeks policy meeting.
Official data showed that U.S. GDP rose at an annual rate of 2.0% in the third quarter, in line with expectations, after rising 1.7% in the second quarter. However the real final sales component - the measure of demand in the U.S. - rose by only 0.6%. That was down from 0.9% in the second quarter and 1.1% in the first quarter.
In the coming week, the economic calendar contains events capable of shaping currency markets for several weeks to come, with the Fed's November 2-3 FOMC meeting and U.S. nonfarm payrolls. In addition, the U.S. is to release key weekly data on initial jobless claims as well as data on pending home sales and reports on manufacturing and service sector growth.
In the euro zone, the European Central Bank is to announce its benchmark interest rate. In addition, the region is to release data on retail sales as well as a report on German 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, November 1
The U.S. is to publish official data on personal income and personal spending, which accounts for the majority of overall economic activity as well as data on manufacturing.
Meanwhile, markets in France will remain closed for a bank holiday.
Tuesday, November 2
The euro zone is to release final data on manufacturing PMI, an important indicator of economic health.
Wednesday, November 3
The U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish industry data on service sector growth. In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement will be followed by the heavily anticipated FOMC rate statement.
Thursday, November 4
In the euro zone, the ECB is to announce its benchmark interest rate. The announcement will be followed by the banks monthly press conference. The region will also release final data on its services PMI and producer price inflation, both important indicators of economic health.
Also Thursday, the U.S. is to publish key weekly data on initial jobless claims, the nation’s earliest economic data and a leading indicator of overall economic health. The country is also to publish quarterly data on non-farm productivity and labor costs, both leading inflationary indicators.
Friday, November 5
The U.S. is to round up the week with data on non-farm employment change and a report on the country's unemployment rate. The country will also release official data on pending home sales, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Meanwhile, the euro zone is to publish official data on retail sales, while Germany is to produce data on factory orders, a leading indicator of production.
EUR/USD hit 1.3733 on Tuesday, the pair’s lowest since October 20; the pair subsequently consolidated at 1.3945 by close of trade on Friday, shedding 0.18% over the week.
The pair is likely to find support at 1.3733, last Wednesday's low and resistance at 1.4097, last Monday's high.
The euro closed higher on the day on Friday, erasing losses following the release of significantly weaker-than-expected data on German retail sales. Official data showed that German retail sales fell by a seasonally adjusted 2.3% in September, after falling by a revised 0.4% in August. Analysts had expected Germany’s retail sales to rise by 0.5% in September.
Meanwhile, U.S. economic data released Friday seemed to underline expectations that the Federal Reserve will intervene to support the U.S. economic recovery, following next weeks policy meeting.
Official data showed that U.S. GDP rose at an annual rate of 2.0% in the third quarter, in line with expectations, after rising 1.7% in the second quarter. However the real final sales component - the measure of demand in the U.S. - rose by only 0.6%. That was down from 0.9% in the second quarter and 1.1% in the first quarter.
In the coming week, the economic calendar contains events capable of shaping currency markets for several weeks to come, with the Fed's November 2-3 FOMC meeting and U.S. nonfarm payrolls. In addition, the U.S. is to release key weekly data on initial jobless claims as well as data on pending home sales and reports on manufacturing and service sector growth.
In the euro zone, the European Central Bank is to announce its benchmark interest rate. In addition, the region is to release data on retail sales as well as a report on German 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, November 1
The U.S. is to publish official data on personal income and personal spending, which accounts for the majority of overall economic activity as well as data on manufacturing.
Meanwhile, markets in France will remain closed for a bank holiday.
Tuesday, November 2
The euro zone is to release final data on manufacturing PMI, an important indicator of economic health.
Wednesday, November 3
The U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish industry data on service sector growth. In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement will be followed by the heavily anticipated FOMC rate statement.
Thursday, November 4
In the euro zone, the ECB is to announce its benchmark interest rate. The announcement will be followed by the banks monthly press conference. The region will also release final data on its services PMI and producer price inflation, both important indicators of economic health.
Also Thursday, the U.S. is to publish key weekly data on initial jobless claims, the nation’s earliest economic data and a leading indicator of overall economic health. The country is also to publish quarterly data on non-farm productivity and labor costs, both leading inflationary indicators.
Friday, November 5
The U.S. is to round up the week with data on non-farm employment change and a report on the country's unemployment rate. The country will also release official data on pending home sales, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Meanwhile, the euro zone is to publish official data on retail sales, while Germany is to produce data on factory orders, a leading indicator of production.