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Forex - Weekly outlook: Feb. 22-26

Published 02/21/2010, 03:54 AM

Investing.com - The week beginning Feb. 22 follows one during which the euro fell to a 9-month low against the U.S. dollar, in the wake of the Federal Reserve's surprise decision to raise an emergency bank-lending rate. 

Next week, Fed chief Bernanke is scheduled to appear before the financial committee of the House of Representatives on Wednesday and the Senate banking panel the following day, where his testimony is expected to shed light on the sudden move. 

Jittery markets will also scrutinize the release of preliminary U.S. GDP figures, as well as data on new home sales, existing home sales, durable goods orders and unemployment in the United States. 

In addition, traders will await the publication of the German Ifo Business Climate Index, a key indicator of the health of the euro zone's largest economy, and the release of Britain's revised GDP. 

The Bank of England, meanwhile, is set to impact the markets at the British parliament's inflation report hearings and with the testimony of its governor, Mervyn King, at the Banking Commission hearing. 

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. 

Monday, Feb. 22 

Australia will begin the week with the publication of monthly data on new motor vehicle sales, a sign of consumer confidence. 

Later in the day, the Bank of Canada's senior deputy governor, Paul Jenkins, will speak at a panel discussion in Vancouver, during which he may signal future changes in monetary policy. 

The Bank of Japan will then publish the minutes of its last monetary policy meeting, which may provide an outlook on the economy and the central bank’s future monetary policy. 

Tuesday, Feb. 23 

The Munich-based Ifo Institute for Economic Research will release its German Business Climate Index, a key indicator of economic conditions and business expectations in the euro-zone’s largest economy. 

Senior Bank of England officials, including King, will then testify on inflation and Britain's economic outlook before Parliament's Treasury Committee

Also Tuesday, the Conference Board will publish its U.S. Consumer Confidence index, which offers an outlook on present and future economic conditions

Wednesday, Feb. 24 

The Reserve Bank of New Zealand will publish its quarterly report on inflation expectations, which will be scrutinized for signs of future interest rate hikes. 

The European Union will then release data on new industrial orders, a key indicator of production, and the Gfk group will publish its German Consumer Climate index. 

Later Wednesday, Bernanke is due to appear before the financial committee of the House of Representatives. Shortly afterward, the U.S. will publish data on new home sales, a leading indicator of economic health. 

Thursday, Feb. 25 

Australia's Bureau of Statistics will release its quarterly report on private capital expenditure, which measures the change in the total inflation-adjusted value of new capital expenditures made by private businesses. 

New Zealand's central bank, meanwhile, will publish its Business Confidence index; later in the day, the country's statistics agency will also release monthly data on the number of new building approvals issued. 

King is set to speak at the Banking Commission Hearing in London; shortly afterward, the Confederation of British Industry will release its monthly Realized Sales index, a leading indicator of consumer spending. 

Also Thursday, the U.S. will publish data on core durable goods orders and unemployment claims. Bernanke is also set to testify before the Senate Banking, Housing and Urban Affairs Committee. 

Friday, Feb. 26 

Britain's Nationwide Building Society will release its Housing Price Index, a key indicator of the housing industry's health. Britain will also release revised figures for its GDP, the broadest measure of economic activity. 

The EU will publish its annual CPI data, the main measure of inflation in the euro-zone. The KOF Economic Research Agency will later publish its Economic Barometer, an important indicator of the state of Switzerland's economy. 

The U.S. will end the week with the publication of preliminary data on its GPD; the National Association of Realtors will also release its monthly report on existing home sales in the U.S.

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