Investing.com - The euro turned lower against the U.S. dollar on Friday, pulling back from a seven-week high and paring some of the week’s gains, after German Chancellor Angela Merkel rejected Greek pleas for an extension to its economic reform program, curbing demand for the single currency.
Following talks with Greek Prime Minister Antonis Samaras on Friday, Chancellor Merkel said it was up to Greece to show that it could implement the austerity measures agreed with its international creditors, but reiterated that the country should stay in the euro zone.
The euro had strengthened broadly earlier in the week boosted by growing expectations that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at it next policy meeting in early September.
The euro touched its highest level against the dollar since July 4 on Thursday, following reports that that Spanish government officials were in talks with the euro zone over an aid package.
The reports were subsequently denied by Spain’s deputy prime minister on Friday.
The dollar came under broad selling pressure after Wednesday’s minutes of the Federal Reserve’s August meeting showed that many policymakers think additional easing may be warranted "fairly soon" unless there is evidence of a "substantial and sustainable" strengthening in the economic recovery.
Meanwhile, sterling fell against the dollar on Friday after revised data showing that the U.K. economy contracted by 0.5% in the second quarter, better than the initial reading of a 0.7% contraction, disappointed some market participants who had expected an even smaller contraction.
The data underlined concerns over the outlook for the U.K. economy and kept alive expectations for another round of quantitative easing by the Bank of England.
The Australian dollar fell to a one-month low against its U.S. counterpart on Friday, after Reserve Bank of Australia Governor Glenn Stevens said policy makers were prepared to respond in the event the economy slowed and added that the country’s miming boom will probably last for another year before easing.
In the coming week investors will be looking ahead to a speech by Federal Reserve Chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming at the end of the week, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
In addition, the U.S. is to release revised data on second quarter economic growth, while Italy is to hold an auction of 10-year governments bonds, in what will be an important test of investor appetite for the country’s debt.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 27
Markets in the U.K. are to remain closed for a bank holiday.
In the euro zone, the Ifo Institute for Economic Research is to release a report on German business climate, a leading indicator of economic health.
Tuesday, August 28
Australia is to produce industry data on new home sales, a key gauge of economic health.
In the euro zone, Germany is to release data on consumer climate, a leading indicator of consumer spending.
Elsewhere in Europe, the U.K. is to release industry data on house price inflation, while Switzerland is to produce official data on the employment level.
Later in the day, the U.S. is to release a report on consumer confidence, a leading indicator of economic health, as well as industry data on house price inflation.
Wednesday, August 29
Australia is to produce official data on construction work done, an important gauge of the construction industry.
In the euro zone, Germany is to release preliminary data on consumer price inflation, which accounts for a majority of overall inflation.
Switzerland is to publish an index of leading economic indicators, which is designed to predict the future direction of the economy.
Canada is to release official data on raw materials price inflation, an important indicator of consumer inflation.
The U.S. is to produce revised data on second quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy's health. The country is also to release industry data on pending home sales, as well as official data on crude oil stockpiles and the Federal Reserve’s Beige Book.
Thursday, August 30
New Zealand is to release official data on building consents, a leading gauge of future construction activity, followed by a report by the Reserve Bank of New Zealand on business confidence.
Australia is to produce official data on building approvals, a key gauge of future construction activity, as well as on private capital expenditure.
Japan is to publish a government report on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
In the euro zone, official data is to be produced on German unemployment change. Separately, Italy is to hold a ten-year government bond auction.
Elsewhere in Europe, the BoE is to publish a report on net lending to individuals.
Later in the day, Canada is to release official data on the current account.
The U.S. is to produce official data on personal consumption expenditures and personal spending. In addition, the annual economic symposium in Jackson Hole, Wyoming is set to begin.
Friday, August 31
Japan is to produce official data on household spending, followed by a report on consumer price inflation in the Tokyo area. The country is also to publish preliminary data on industrial production. Elsewhere, the RBA is to release a report on private sector credit.
The euro zone is to publish preliminary data on consumer price inflation, which accounts for the majority of overall inflation, as well as official data on the unemployment rate throughout the single currency bloc. Germany is to produce official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
The U.K. is to release a report on consumer confidence, an important indicator of economic health.
Later Friday, Canada is to produce a report on second quarter GDP, the broadest measure of economic activity and the primary gauge of the economy's health.
The U.S. is to round up the week with a report on Chicago’s purchasing managers’ index as well as revised data by the University of Michigan on consumer sentiment, as well as official data on factory orders.
Federal Reserve Chairman Ben Bernanke is also scheduled to speak at the Jackson Hole Symposium; his comments will be closely watched for any indications on the future possible direction of monetary policy.
Following talks with Greek Prime Minister Antonis Samaras on Friday, Chancellor Merkel said it was up to Greece to show that it could implement the austerity measures agreed with its international creditors, but reiterated that the country should stay in the euro zone.
The euro had strengthened broadly earlier in the week boosted by growing expectations that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at it next policy meeting in early September.
The euro touched its highest level against the dollar since July 4 on Thursday, following reports that that Spanish government officials were in talks with the euro zone over an aid package.
The reports were subsequently denied by Spain’s deputy prime minister on Friday.
The dollar came under broad selling pressure after Wednesday’s minutes of the Federal Reserve’s August meeting showed that many policymakers think additional easing may be warranted "fairly soon" unless there is evidence of a "substantial and sustainable" strengthening in the economic recovery.
Meanwhile, sterling fell against the dollar on Friday after revised data showing that the U.K. economy contracted by 0.5% in the second quarter, better than the initial reading of a 0.7% contraction, disappointed some market participants who had expected an even smaller contraction.
The data underlined concerns over the outlook for the U.K. economy and kept alive expectations for another round of quantitative easing by the Bank of England.
The Australian dollar fell to a one-month low against its U.S. counterpart on Friday, after Reserve Bank of Australia Governor Glenn Stevens said policy makers were prepared to respond in the event the economy slowed and added that the country’s miming boom will probably last for another year before easing.
In the coming week investors will be looking ahead to a speech by Federal Reserve Chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming at the end of the week, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
In addition, the U.S. is to release revised data on second quarter economic growth, while Italy is to hold an auction of 10-year governments bonds, in what will be an important test of investor appetite for the country’s debt.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 27
Markets in the U.K. are to remain closed for a bank holiday.
In the euro zone, the Ifo Institute for Economic Research is to release a report on German business climate, a leading indicator of economic health.
Tuesday, August 28
Australia is to produce industry data on new home sales, a key gauge of economic health.
In the euro zone, Germany is to release data on consumer climate, a leading indicator of consumer spending.
Elsewhere in Europe, the U.K. is to release industry data on house price inflation, while Switzerland is to produce official data on the employment level.
Later in the day, the U.S. is to release a report on consumer confidence, a leading indicator of economic health, as well as industry data on house price inflation.
Wednesday, August 29
Australia is to produce official data on construction work done, an important gauge of the construction industry.
In the euro zone, Germany is to release preliminary data on consumer price inflation, which accounts for a majority of overall inflation.
Switzerland is to publish an index of leading economic indicators, which is designed to predict the future direction of the economy.
Canada is to release official data on raw materials price inflation, an important indicator of consumer inflation.
The U.S. is to produce revised data on second quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy's health. The country is also to release industry data on pending home sales, as well as official data on crude oil stockpiles and the Federal Reserve’s Beige Book.
Thursday, August 30
New Zealand is to release official data on building consents, a leading gauge of future construction activity, followed by a report by the Reserve Bank of New Zealand on business confidence.
Australia is to produce official data on building approvals, a key gauge of future construction activity, as well as on private capital expenditure.
Japan is to publish a government report on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
In the euro zone, official data is to be produced on German unemployment change. Separately, Italy is to hold a ten-year government bond auction.
Elsewhere in Europe, the BoE is to publish a report on net lending to individuals.
Later in the day, Canada is to release official data on the current account.
The U.S. is to produce official data on personal consumption expenditures and personal spending. In addition, the annual economic symposium in Jackson Hole, Wyoming is set to begin.
Friday, August 31
Japan is to produce official data on household spending, followed by a report on consumer price inflation in the Tokyo area. The country is also to publish preliminary data on industrial production. Elsewhere, the RBA is to release a report on private sector credit.
The euro zone is to publish preliminary data on consumer price inflation, which accounts for the majority of overall inflation, as well as official data on the unemployment rate throughout the single currency bloc. Germany is to produce official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
The U.K. is to release a report on consumer confidence, an important indicator of economic health.
Later Friday, Canada is to produce a report on second quarter GDP, the broadest measure of economic activity and the primary gauge of the economy's health.
The U.S. is to round up the week with a report on Chicago’s purchasing managers’ index as well as revised data by the University of Michigan on consumer sentiment, as well as official data on factory orders.
Federal Reserve Chairman Ben Bernanke is also scheduled to speak at the Jackson Hole Symposium; his comments will be closely watched for any indications on the future possible direction of monetary policy.