Investing.com -The U.S. dollar ended the week broadly lower against its major counterparts on Friday, falling against the euro and the yen, after disappointing data on first-quarter growth fuelled expectations for another round of easing from the Federal Reserve.
The Commerce Department said gross domestic product in the U.S. expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase.
Earlier in the week, Fed Chairman Ben Bernanke left open the possibility of further measures to bolster economic growth, following the central bank’s monetary policy meeting.
The euro had found support earlier Friday, after a well received auction of Italian government debt eased investor concerns over the euro zone, following a two-notch downgrade of Spain by ratings agency Standard & Poor’s.
S&P cut Spain’s long-term credit rating to BBB+ from A and gave it a negative outlook on Thursday, saying that the recession will undermine government efforts to reduce one of the largest budget deficits in the single currency bloc.
The yen firmed up against the dollar and the euro after new easing measures announced by the Bank of Japan fell short of some market expectations. The BoJ said it will increase the size of its asset purchase fund by JPY5 trillion, while a program to provide loans to banks was cut back by JPY5 trillion.
Elsewhere, the pound rallied to an almost eight-month high against the greenback on Friday, despite data earlier in the week showing that the U.K. economy entered a recession in the first quarter.
Data on Wednesday showed that U.K. GDP contracted by 0.2% after contracting by 0.3% in the fourth quarter, confounding expectations for 0.1% growth.
The pound has remained supported in recent weeks, with investors viewing the currency as an alternative to the euro, but the weak growth data has sparked fresh concerns over the possibility of more easing by the Bank of England.
Elsewhere Friday, Swiss National Bank president Thomas Jordan said the central bank was prepared to take further measures to weaken the franc if necessary, as the strength of the currency still poses “considerable challenges” to the economy.
In the week ahead, Friday’s data on U.S. non-farm payrolls will be eagerly anticipated amid concerns that the economic recovery in the U.S. is losing momentum.
In the euro zone, investors will be looking ahead to Wednesday’s data on manufacturing activity, as well as the outcome of the European Central Bank’s policy meeting on Thursday. In addition, both Spain and France are to hold auctions of government debt.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 30
Markets in Japan are to remain closed due to a national holiday. Elsewhere, New Zealand is to release official data on building consents, a leading gauge of future construction activity, followed by a report on the trade balance, the difference in value between imported and exported goods. The country is also to publish data on business confidence.
Australia is to produce industry data on new home sales, a leading indicator of economic health, as well as a report by the Reserve Bank of Australia on private sector credit.
The euro zone is to release preliminary data on consumer price inflation, which accounts for the majority of overall inflation, while the ECB is to publish a report on money supply. In addition, Germany is to release official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of economic activity.
Canada is to release official data on monthly GDP growth, the broadest measure of economic activity and the primary gauge of the economy’s health. The country is also to release government data on raw material price inflation, a leading indicator of consumer inflation.
The U.S. is to publish official data on core personal consumption expenditures price inflation and on personal spending, followed by a report on business activity in Chicago.
Tuesday, May 1
In Australia, the RBA is to announce its benchmark interest rate, and release its rate statement. The country is also to publish official data on house price inflation, a key indicator of the housing industry’s health. New Zealand is to release official data on labor cost inflation, a leading indicator of consumer inflation.
In Europe, markets in France, Germany, Italy and Switzerland are to remain closed due to national holidays. The U.K. is to release data on manufacturing activity, a leading indicator of economic health, as well as an industry report on house price inflation.
Later Tuesday, Bank of Canada Governor Mark Carney is to speak in Toronto; his comments will be closely watched for any clues on the future possible direction of monetary policy.
In the U.S., the Institute for Supply Management is to release a closely watched report on manufacturing activity.
Wednesday, May 2
Japan is to publish government data on average cash earnings, an important inflationary indicator.
Switzerland is to release government data on retail sales, as well as official data on manufacturing sector activity.
The euro zone is to publish official data the unemployment rate, while Germany is to release government data on unemployment change, an important signal of overall economic health. Euro zone finance ministers were also scheduled to meet for talks throughout the day.
The U.K. is to release data on construction sector growth, a key indicator of economic health, while the Bank of England is to publish data on net lending to individuals.
Later in the day, the U.S. is to produce a report on non-farm employment change, a leading indicator of economic health, followed by government data on factory orders and crude oil stockpiles.
Thursday, May 3
New Zealand is to produce official data on employment change and on the unemployment rate, while Australia is to publish data on service sector activity. Meanwhile, markets in Japan are to remain closed due to a national holiday.
The U.K. is to release a report by the Nationwide Building Society on house price inflation, followed by data on service sector activity.
In the euro zone, the ECB is to announce its benchmark interest rate. The announcement is to be followed by a press conference with ECB head Mario Draghi.
Later Thursday, the U.S. is to produce government data on unemployment claims, as well as preliminary data on nonfarm productivity and unit labor costs, an important signal of consumer inflation. The country is also to publish an ISM report on service sector growth.
Friday, May 4
The RBA is to release its monetary policy statement, which provides valuable insights into the bank's view of economic conditions and inflation. Markets in Japan are to remain closed due to a national holiday.
The euro zone is to release official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of economic activity.
In Canada, the Ivey School of Business is to publish its index of business activity.
The U.S. is to round up the week by publishing its closely watched government data on non-farm employment change and the unemployment rate, as well as a report on average hourly earnings.
The Commerce Department said gross domestic product in the U.S. expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase.
Earlier in the week, Fed Chairman Ben Bernanke left open the possibility of further measures to bolster economic growth, following the central bank’s monetary policy meeting.
The euro had found support earlier Friday, after a well received auction of Italian government debt eased investor concerns over the euro zone, following a two-notch downgrade of Spain by ratings agency Standard & Poor’s.
S&P cut Spain’s long-term credit rating to BBB+ from A and gave it a negative outlook on Thursday, saying that the recession will undermine government efforts to reduce one of the largest budget deficits in the single currency bloc.
The yen firmed up against the dollar and the euro after new easing measures announced by the Bank of Japan fell short of some market expectations. The BoJ said it will increase the size of its asset purchase fund by JPY5 trillion, while a program to provide loans to banks was cut back by JPY5 trillion.
Elsewhere, the pound rallied to an almost eight-month high against the greenback on Friday, despite data earlier in the week showing that the U.K. economy entered a recession in the first quarter.
Data on Wednesday showed that U.K. GDP contracted by 0.2% after contracting by 0.3% in the fourth quarter, confounding expectations for 0.1% growth.
The pound has remained supported in recent weeks, with investors viewing the currency as an alternative to the euro, but the weak growth data has sparked fresh concerns over the possibility of more easing by the Bank of England.
Elsewhere Friday, Swiss National Bank president Thomas Jordan said the central bank was prepared to take further measures to weaken the franc if necessary, as the strength of the currency still poses “considerable challenges” to the economy.
In the week ahead, Friday’s data on U.S. non-farm payrolls will be eagerly anticipated amid concerns that the economic recovery in the U.S. is losing momentum.
In the euro zone, investors will be looking ahead to Wednesday’s data on manufacturing activity, as well as the outcome of the European Central Bank’s policy meeting on Thursday. In addition, both Spain and France are to hold auctions of government debt.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 30
Markets in Japan are to remain closed due to a national holiday. Elsewhere, New Zealand is to release official data on building consents, a leading gauge of future construction activity, followed by a report on the trade balance, the difference in value between imported and exported goods. The country is also to publish data on business confidence.
Australia is to produce industry data on new home sales, a leading indicator of economic health, as well as a report by the Reserve Bank of Australia on private sector credit.
The euro zone is to release preliminary data on consumer price inflation, which accounts for the majority of overall inflation, while the ECB is to publish a report on money supply. In addition, Germany is to release official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of economic activity.
Canada is to release official data on monthly GDP growth, the broadest measure of economic activity and the primary gauge of the economy’s health. The country is also to release government data on raw material price inflation, a leading indicator of consumer inflation.
The U.S. is to publish official data on core personal consumption expenditures price inflation and on personal spending, followed by a report on business activity in Chicago.
Tuesday, May 1
In Australia, the RBA is to announce its benchmark interest rate, and release its rate statement. The country is also to publish official data on house price inflation, a key indicator of the housing industry’s health. New Zealand is to release official data on labor cost inflation, a leading indicator of consumer inflation.
In Europe, markets in France, Germany, Italy and Switzerland are to remain closed due to national holidays. The U.K. is to release data on manufacturing activity, a leading indicator of economic health, as well as an industry report on house price inflation.
Later Tuesday, Bank of Canada Governor Mark Carney is to speak in Toronto; his comments will be closely watched for any clues on the future possible direction of monetary policy.
In the U.S., the Institute for Supply Management is to release a closely watched report on manufacturing activity.
Wednesday, May 2
Japan is to publish government data on average cash earnings, an important inflationary indicator.
Switzerland is to release government data on retail sales, as well as official data on manufacturing sector activity.
The euro zone is to publish official data the unemployment rate, while Germany is to release government data on unemployment change, an important signal of overall economic health. Euro zone finance ministers were also scheduled to meet for talks throughout the day.
The U.K. is to release data on construction sector growth, a key indicator of economic health, while the Bank of England is to publish data on net lending to individuals.
Later in the day, the U.S. is to produce a report on non-farm employment change, a leading indicator of economic health, followed by government data on factory orders and crude oil stockpiles.
Thursday, May 3
New Zealand is to produce official data on employment change and on the unemployment rate, while Australia is to publish data on service sector activity. Meanwhile, markets in Japan are to remain closed due to a national holiday.
The U.K. is to release a report by the Nationwide Building Society on house price inflation, followed by data on service sector activity.
In the euro zone, the ECB is to announce its benchmark interest rate. The announcement is to be followed by a press conference with ECB head Mario Draghi.
Later Thursday, the U.S. is to produce government data on unemployment claims, as well as preliminary data on nonfarm productivity and unit labor costs, an important signal of consumer inflation. The country is also to publish an ISM report on service sector growth.
Friday, May 4
The RBA is to release its monetary policy statement, which provides valuable insights into the bank's view of economic conditions and inflation. Markets in Japan are to remain closed due to a national holiday.
The euro zone is to release official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of economic activity.
In Canada, the Ivey School of Business is to publish its index of business activity.
The U.S. is to round up the week by publishing its closely watched government data on non-farm employment change and the unemployment rate, as well as a report on average hourly earnings.