Inversting.com - The euro edged higher against the dollar on Friday as investor sentiment was bolstered by optimism for a deal on the U.S. budget and debt ceiling impasse ahead of a deadline to avoid a U.S. sovereign default.
EUR/USD ended Friday’s session at 1.3538, 0.14% higher for the day, after rising as high as 1.3582 earlier. For the week, the pair was down 0.30%.
The pair is likely to find support at 1.3485, the low of October 9 and resistance at 1.3603, the high of October 9.
House Republicans and the Obama administration began a second day of negotiations on Friday, on a deal to reopen the government and raise the U.S. government borrowing limit for six weeks.
The U.S. risks running out of cash if the debt ceiling is not raised by 17 October.
Meanwhile, concerns over economic impact of the political deadlock in Washington fuelled expectations that the Federal Reserve will further delay plans to start phasing out its USD85 billion a month asset purchase program.
Wednesday’s minutes of the Fed’s September meeting said the decision not to begin tapering stimulus was a "close call," with all but one voting member opting to leave the program unchanged.
Data released on Friday showed that U.S. consumer sentiment fell to the lowest level in nine months in October, as concerns over the impact of the government shutdown weighed.
The University of Michigan’s consumer sentiment index declined to 75.2 from a final reading of 77.5 in September, and below expectations for a reading of 76.0.
Elsewhere, the euro ended the week higher against the pound and the yen. EUR/GBP settled at 0.8490, 0.26% higher for the day and 0.64% higher for the week. EUR/JPY closed trading at 133.45, 0.55% higher for the day and bringing the week’s gains to 1.61%.
In the week ahead, investors will continued to closely monitor political developments in Washington. Trade volumes are likely to remain light on Monday, with U.S. markets closed for a holiday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Friday as there are no relevant events on this day.
Monday, October 14
The euro zone is to release data on industrial production.
Markets in the U.S. are to remain closed for the Columbus Day holiday.
Tuesday, October 15
The ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health, as well as data on economic sentiment in the wider euro zone. The euro zone is to release official data on industrial production.
The U.S. is to release a report on manufacturing activity in the Empire state.
Wednesday, October 16
The euro zone is to release data on consumer price inflation, which accounts for the majority of overall inflation.
Thursday, October 17
The U.S. is to publish the weekly government report on initial jobless claims, as well as data on manufacturing activity from the Philly Fed.
EUR/USD ended Friday’s session at 1.3538, 0.14% higher for the day, after rising as high as 1.3582 earlier. For the week, the pair was down 0.30%.
The pair is likely to find support at 1.3485, the low of October 9 and resistance at 1.3603, the high of October 9.
House Republicans and the Obama administration began a second day of negotiations on Friday, on a deal to reopen the government and raise the U.S. government borrowing limit for six weeks.
The U.S. risks running out of cash if the debt ceiling is not raised by 17 October.
Meanwhile, concerns over economic impact of the political deadlock in Washington fuelled expectations that the Federal Reserve will further delay plans to start phasing out its USD85 billion a month asset purchase program.
Wednesday’s minutes of the Fed’s September meeting said the decision not to begin tapering stimulus was a "close call," with all but one voting member opting to leave the program unchanged.
Data released on Friday showed that U.S. consumer sentiment fell to the lowest level in nine months in October, as concerns over the impact of the government shutdown weighed.
The University of Michigan’s consumer sentiment index declined to 75.2 from a final reading of 77.5 in September, and below expectations for a reading of 76.0.
Elsewhere, the euro ended the week higher against the pound and the yen. EUR/GBP settled at 0.8490, 0.26% higher for the day and 0.64% higher for the week. EUR/JPY closed trading at 133.45, 0.55% higher for the day and bringing the week’s gains to 1.61%.
In the week ahead, investors will continued to closely monitor political developments in Washington. Trade volumes are likely to remain light on Monday, with U.S. markets closed for a holiday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Friday as there are no relevant events on this day.
Monday, October 14
The euro zone is to release data on industrial production.
Markets in the U.S. are to remain closed for the Columbus Day holiday.
Tuesday, October 15
The ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health, as well as data on economic sentiment in the wider euro zone. The euro zone is to release official data on industrial production.
The U.S. is to release a report on manufacturing activity in the Empire state.
Wednesday, October 16
The euro zone is to release data on consumer price inflation, which accounts for the majority of overall inflation.
Thursday, October 17
The U.S. is to publish the weekly government report on initial jobless claims, as well as data on manufacturing activity from the Philly Fed.