Investing.com – Last week saw the euro advance to an 8-month high against the U.S. dollar as weak U.S. economic data made it appear more likely that the Federal Reserve would implement a fresh round of quantitative easing measures in coming months.
EUR/USD hit 1.4028 on Thursday, the pair’s highest since January 28; the pair subsequently consolidated at 1.3936 by close of trade on Friday, surging 1.06% over the week.
The pair is likely to find support at 1.3636, the low of October 5 and resistance at 1.4178, the high of January 26.
The euro erased Thursday’s gains following the release of better-than-expected U.S. data on initial jobless claims. The dollar’s respite was short-lived however, as data released on Friday showed that U.S. non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month.
But the euro trimmed Friday’s gains, to close below the 8-month high, after the head of the euro zone’s finance ministers, Jean-Claude Juncker said that the euro was too strong and the single currency’s strength did not reflect the region's economic fundamentals.
It is unusual for an official of Juncker's rank to mention currency strength. His comments came ahead of Saturday’s meeting between the International Monetary Fund and the World Bank with world financial leaders looking at how best to address simmering tensions among countries vying to keep their currencies weak in order to boost export growth.
Next week, the U.S. is to publish its closely watched weekly report on initial jobless claims as well as key data on inflation, retail sales and consumer sentiment. In addition, Federal Reserve chairman Ben Bernanke is to speak at two public engagements, while the bank is to publish the minutes of the most recent meeting of its monetary policy committee.
Meanwhile, the euro zone is to release data on inflation and industrial production while European Central Bank president Jean Claude Trichet is to appear at a number of public engagements.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect EUR/USD.
Monday, October 11
Markets in the U.S. will remain closed on Monday for the Columbus Day holiday. Meanwhile, in the euro zone both France and Italy are to publish official data on industrial production, a leading indicator of economic health. Also Monday, European Central Bank President Jean Claude Trichet is to give a speech; his comments will be closely watched for any clues to the future direction of monetary policy.
Tuesday, October 12
The U.S. is to publish the minutes of the most recent meeting of the Federal Reserve’s Federal Open Market Committee. The minutes provide in-depth insights into the economic conditions that influenced their vote on where to set interest rates.
In addition, Germany is to publish official data on consumer price inflation and wholesale price inflation, both leading indicators of overall inflation. Also Tuesday, ECB head Jean Claude Trichet is to speak at a public engagement.
Wednesday, October 13
The U.S. is to release key data on import prices, while Fed chair Ben Bernanke is due to speak at a public engagement. His comments will be closely examined for any indications of the future direction of monetary policy.
Also Wednesday, France is to publish data on consumer price inflation, while the wider euro zone is to publish official data on industrial production.
Thursday, October 14
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of overall economic health. The country is also to publish a report on producer prices, a leading indicator of consumer inflation. Later in the day, the U.S. will publish official data on its trade balance, the difference in value between imported and exported goods during the month, as well reports on crude oil and natural gas stockpiles.
In the euro zone, the ECB is to publish its monthly bulletin which provides detailed analysis of current and future economic conditions from the bank's viewpoint. Also Thursday, ECB policy maker and Deutsch Bank president Axel Weber is to speak at a public engagement.
Friday, October 15
The U.S. is to round up the week by producing official data on retail sales, business inventories and its consumer price index, while the University of Michigan is to release preliminary data on consumer sentiment and inflation expectations. Also Friday, the Federal Reserve Bank of New York is due to release key data on the city’s manufacturing sector while Fed chair Ben Bernanke will be speaking at a public engagement.
The euro zone will conclude the week with key data on consumer prices, a leading indicator of inflation, as well as official data on its trade balance, the difference in value between imported and exported goods during the month.
EUR/USD hit 1.4028 on Thursday, the pair’s highest since January 28; the pair subsequently consolidated at 1.3936 by close of trade on Friday, surging 1.06% over the week.
The pair is likely to find support at 1.3636, the low of October 5 and resistance at 1.4178, the high of January 26.
The euro erased Thursday’s gains following the release of better-than-expected U.S. data on initial jobless claims. The dollar’s respite was short-lived however, as data released on Friday showed that U.S. non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month.
But the euro trimmed Friday’s gains, to close below the 8-month high, after the head of the euro zone’s finance ministers, Jean-Claude Juncker said that the euro was too strong and the single currency’s strength did not reflect the region's economic fundamentals.
It is unusual for an official of Juncker's rank to mention currency strength. His comments came ahead of Saturday’s meeting between the International Monetary Fund and the World Bank with world financial leaders looking at how best to address simmering tensions among countries vying to keep their currencies weak in order to boost export growth.
Next week, the U.S. is to publish its closely watched weekly report on initial jobless claims as well as key data on inflation, retail sales and consumer sentiment. In addition, Federal Reserve chairman Ben Bernanke is to speak at two public engagements, while the bank is to publish the minutes of the most recent meeting of its monetary policy committee.
Meanwhile, the euro zone is to release data on inflation and industrial production while European Central Bank president Jean Claude Trichet is to appear at a number of public engagements.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect EUR/USD.
Monday, October 11
Markets in the U.S. will remain closed on Monday for the Columbus Day holiday. Meanwhile, in the euro zone both France and Italy are to publish official data on industrial production, a leading indicator of economic health. Also Monday, European Central Bank President Jean Claude Trichet is to give a speech; his comments will be closely watched for any clues to the future direction of monetary policy.
Tuesday, October 12
The U.S. is to publish the minutes of the most recent meeting of the Federal Reserve’s Federal Open Market Committee. The minutes provide in-depth insights into the economic conditions that influenced their vote on where to set interest rates.
In addition, Germany is to publish official data on consumer price inflation and wholesale price inflation, both leading indicators of overall inflation. Also Tuesday, ECB head Jean Claude Trichet is to speak at a public engagement.
Wednesday, October 13
The U.S. is to release key data on import prices, while Fed chair Ben Bernanke is due to speak at a public engagement. His comments will be closely examined for any indications of the future direction of monetary policy.
Also Wednesday, France is to publish data on consumer price inflation, while the wider euro zone is to publish official data on industrial production.
Thursday, October 14
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of overall economic health. The country is also to publish a report on producer prices, a leading indicator of consumer inflation. Later in the day, the U.S. will publish official data on its trade balance, the difference in value between imported and exported goods during the month, as well reports on crude oil and natural gas stockpiles.
In the euro zone, the ECB is to publish its monthly bulletin which provides detailed analysis of current and future economic conditions from the bank's viewpoint. Also Thursday, ECB policy maker and Deutsch Bank president Axel Weber is to speak at a public engagement.
Friday, October 15
The U.S. is to round up the week by producing official data on retail sales, business inventories and its consumer price index, while the University of Michigan is to release preliminary data on consumer sentiment and inflation expectations. Also Friday, the Federal Reserve Bank of New York is due to release key data on the city’s manufacturing sector while Fed chair Ben Bernanke will be speaking at a public engagement.
The euro zone will conclude the week with key data on consumer prices, a leading indicator of inflation, as well as official data on its trade balance, the difference in value between imported and exported goods during the month.