Investing.com – Last week saw the euro close lower against the U.S. dollar for the first time in six weeks amid volatile trade after a surprise rate hike by China’s central bank and amid uncertainty ahead of the weekend G20 meetings.
EUR/USD hit 1.3697 on Wednesday, the pair’s lowest since October 5; the pair subsequently consolidated at 1.3952 by close of trade on Friday, shedding 0.25% over the week.
The pair is likely to find support at 1.3697, last Wednesday’s low and resistance at 1.4157, the high of October 15 and an 8-month high.
The euro tumbled on Tuesday after China’s central bank unexpectedly hiked its benchmark interest rate for the first time in three years, sparking fears over a slowdown in global economic growth. However the dollar pared gains on Wednesday, amid a sense that the previous day’s selloff was overdone.
Trade remained volatile in the run up to the G20 meetings which focused on whether nations are relying on weaker exchange rates to spur economic growth. Following the meetings, leaders pledged to shun competitive currency devaluations but pulled up short of setting targets to reduce trade imbalances that are overshadowing prospects for global growth.
In the week ahead, the U.S. is to publish official data relating to the housing sector as well as data on consumer confidence, manufacturing, and GDP. The country will also publish a key weekly report on jobless claims while the chairman of the Federal Reserve is due to speak.
In the euro zone, data from Germany will dominate as the country is set to release data on consumer climate and unemployment. Meanwhile, the broader euro zone is to publish data on industrial production and CPI. The European Central Bank president is also expected to speak.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 25
The U.S. will publish official data on existing home sales, a leading indicator of economic health while Federal Reserve Chairman Ben Bernanke is to speak 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 produce official data on industrial new orders, a leading indicator of production.
Tuesday, October 26
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release both industry data and official data on house prices as well as a report on manufacturing activity in the Richmond area.
In the euro zone, Germany is produce data on import prices, while market research group Gfk will publish a report on German consumer climate.
Wednesday, October 27
The U.S. is to publish government data on durable goods orders, a leading indicator of production. The country is also to publish official data on new home sales, a leading indicator of health in the housing sector as well as a report on crude oil inventories.
Meanwhile, in the euro zone, Germany is to publish preliminary data on consumer price inflation while France is to release consumer spending data. Later in the day, the European Central Bank is to release data on private borrowing and M3 money supply, an important inflationary indicator.
Thursday, October 28
The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of economic health, as well as information on natural gas stockpiles.
In the euro zone, Germany is due to release a report on employment change, while President of the European Central Bank Jean-Claude Trichet is to speak at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Friday, October 29
The U.S. is to round up the week by producing preliminary data on GDP, the leading indicator of economic growth. The country is also to publish a report on manufacturing activity in Chicago, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
Also Friday, the euro zone is to produce key data on its unemployment rate as well as preliminary data on inflation, while Germany is due to release a report on retail sales, a leading indicator of consumer confidence.
EUR/USD hit 1.3697 on Wednesday, the pair’s lowest since October 5; the pair subsequently consolidated at 1.3952 by close of trade on Friday, shedding 0.25% over the week.
The pair is likely to find support at 1.3697, last Wednesday’s low and resistance at 1.4157, the high of October 15 and an 8-month high.
The euro tumbled on Tuesday after China’s central bank unexpectedly hiked its benchmark interest rate for the first time in three years, sparking fears over a slowdown in global economic growth. However the dollar pared gains on Wednesday, amid a sense that the previous day’s selloff was overdone.
Trade remained volatile in the run up to the G20 meetings which focused on whether nations are relying on weaker exchange rates to spur economic growth. Following the meetings, leaders pledged to shun competitive currency devaluations but pulled up short of setting targets to reduce trade imbalances that are overshadowing prospects for global growth.
In the week ahead, the U.S. is to publish official data relating to the housing sector as well as data on consumer confidence, manufacturing, and GDP. The country will also publish a key weekly report on jobless claims while the chairman of the Federal Reserve is due to speak.
In the euro zone, data from Germany will dominate as the country is set to release data on consumer climate and unemployment. Meanwhile, the broader euro zone is to publish data on industrial production and CPI. The European Central Bank president is also expected to speak.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 25
The U.S. will publish official data on existing home sales, a leading indicator of economic health while Federal Reserve Chairman Ben Bernanke is to speak 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 produce official data on industrial new orders, a leading indicator of production.
Tuesday, October 26
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release both industry data and official data on house prices as well as a report on manufacturing activity in the Richmond area.
In the euro zone, Germany is produce data on import prices, while market research group Gfk will publish a report on German consumer climate.
Wednesday, October 27
The U.S. is to publish government data on durable goods orders, a leading indicator of production. The country is also to publish official data on new home sales, a leading indicator of health in the housing sector as well as a report on crude oil inventories.
Meanwhile, in the euro zone, Germany is to publish preliminary data on consumer price inflation while France is to release consumer spending data. Later in the day, the European Central Bank is to release data on private borrowing and M3 money supply, an important inflationary indicator.
Thursday, October 28
The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of economic health, as well as information on natural gas stockpiles.
In the euro zone, Germany is due to release a report on employment change, while President of the European Central Bank Jean-Claude Trichet is to speak at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Friday, October 29
The U.S. is to round up the week by producing preliminary data on GDP, the leading indicator of economic growth. The country is also to publish a report on manufacturing activity in Chicago, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
Also Friday, the euro zone is to produce key data on its unemployment rate as well as preliminary data on inflation, while Germany is due to release a report on retail sales, a leading indicator of consumer confidence.