Investing.com - The U.S. dollar weakened against its major counterparts on Friday, after a report showed that U.S. new home sales fell for a second month in February, but the greenback remained supported by the view that the outlook for the U.S. economy is improving.
The Commerce Department said new home sales dropped 1.6% to a 313,000 annual pace, the slowest since October, from a 318,000 annual rate in January and against expectations for an increase to 325,000.
The data saw the greenback slide to a three-week low against the euro, and its lowest level in one month against the Swiss franc. The greenback touched its lowest point against the yen since March 13 before paring some of its losses.
The greenback remained supported after the Federal Reserve upgraded its view on the economy earlier this month, leading investors to trim back expectations for a third round of monetary easing from the central bank.
The euro failed to build on gains as the outlook for growth in the single currency bloc remained clouded after data on Thursday showed that manufacturing activity slumped unexpectedly in March, remaining in contraction territory for the eighth consecutive month, while service sector activity declined to the lowest level in four months in March.
The yen found support on Thursday, after official data showed that Japan posted an unexpected trade surplus in February, fuelling hopes that the economy is recovering.
Japan’s trade balance swung into a surplus of JPY32.92 billion last month, confounding expectations for a deficit of JPY120 billion, as exports exceeded imports.
Elsewhere Friday, the commodity linked Australian and New Zealand dollars preformed strongly against the greenback, as risk appetite sharpened. The growth linked dollars had fallen sharply against the greenback earlier in the week, as indications that growth in China is slackening sparked fears that commodity prices could fall.
In the week ahead, market participants will be looking ahead to Friday’s meeting of euro zone finance ministers to discuss the lending capacity of the region’s permanent bailout fund, the European Financial Stability Facility.
Meanwhile, the U.S. is to release data on consumer confidence, pending homes sales, and factory output, all of which will be closely watched in order to gauge the strength of the U.S. economic recovery.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 26
New Zealand is to produce official data on trade balance, the difference in value between imported and exported goods.
In the euro zone, the Ifo Institute for Economic Research is publish a report on German business climate, a leading indicator of economic health, while European Central Bank President Mario Draghi is due to speak later in the day.
Elsewhere, Federal Reserve Chairman Ben Bernanke is scheduled to speak at the National Association for Business Economists 2012 Policy Conference. The U.S. is also to publish industry data on pending home sales, a key gauge of economic health.
Later Monday, Bank of Canada Governor Mark Carney is to speak.
Tuesday, March 27
In the euro zone, a Gfk report is to be published on German consumer climate, an important indicator of consumer spending.
The U.K. is to release a report by the Nationwide Building Society on house price inflation, a leading measure of the housing industry’s health, followed by industry data on retail sales.
The U.S. is to produce a Standard & Poor’s/Case Shiller composite-20 house price inflation report, as well as industry data on consumer confidence.
Later in the day, Fed Chairman Bernanke is due to deliver the third part of a lecture titled "The Federal Reserve and its Role in Today's Economy" at the George Washington University School of Business, in Washington.
Wednesday, March 28
The Reserve Bank of Australia is to publish a financial stability review, which is an assessment of conditions in the financial system and potential risks to financial stability.
In the euro zone, Germany is to release preliminary data on consumer price inflation, which accounts for a majority of overall inflation. The ECB is also to release data on money supply.
Elsewhere in Europe, the U.K. is to release official data on the current account and a final report on gross domestic product, the broadest measure of economic activity and the primary gauge of the economy’s health.
The U.S. is to publish government data on durable goods orders, a leading indicator of production, followed by a report on crude oil stockpiles.
Thursday, March 29
Japan is to produce government data on retail sales, the primary gauge of consumer spending. Meanwhile, the National Bank of New Zealand is to release data on business confidence.
In the euro zone, official data is to be published on German unemployment change, an important signal of overall economic health.
Elsewhere in Europe, the Bank of England is to release data on credit conditions and on net lending to individuals.
Canada is to produce official data on raw materials price inflation, a leading indicator of consumer inflation, followed by government data on the annual budget.
Later Thursday, the U.S. is to publish government data on unemployment claims, a key signal of overall economic health, as well as final data on fourth quarter GDP. Fed Chairman Bernanke is also due to speak.
Friday, March 30
New Zealand is to produce official data on building consents, an important gauge of future construction activity. Meanwhile, Australia is to release industry data on new home sales, while the RBA is to publish a report on private sector credit.
Japan is to publish official data on household spending, which accounts for a majority of overall economic activity, as well as on consumer price inflation in Tokyo. The country is also to produce preliminary data on industrial production, a key indicator of economic health.
Elsewhere, the U.K. is to publish a Gfk report on consumer confidence, while Switzerland is to release data on the KOF economic barometer.
In the euro zone, official data is to be produced on German retail sales and on French consumer spending, followed by a preliminary report on consumer price inflation throughout the single currency bloc.
Later in the day, Canada is to release official data on GDP for January.
The U.S. is to round up the week with government data on personal consumption expenditures and personal spending as well as industry data on the purchasing managers’ index in Chicago. In addition, the University of Michigan is to release revised data on consumer sentiment.
The Commerce Department said new home sales dropped 1.6% to a 313,000 annual pace, the slowest since October, from a 318,000 annual rate in January and against expectations for an increase to 325,000.
The data saw the greenback slide to a three-week low against the euro, and its lowest level in one month against the Swiss franc. The greenback touched its lowest point against the yen since March 13 before paring some of its losses.
The greenback remained supported after the Federal Reserve upgraded its view on the economy earlier this month, leading investors to trim back expectations for a third round of monetary easing from the central bank.
The euro failed to build on gains as the outlook for growth in the single currency bloc remained clouded after data on Thursday showed that manufacturing activity slumped unexpectedly in March, remaining in contraction territory for the eighth consecutive month, while service sector activity declined to the lowest level in four months in March.
The yen found support on Thursday, after official data showed that Japan posted an unexpected trade surplus in February, fuelling hopes that the economy is recovering.
Japan’s trade balance swung into a surplus of JPY32.92 billion last month, confounding expectations for a deficit of JPY120 billion, as exports exceeded imports.
Elsewhere Friday, the commodity linked Australian and New Zealand dollars preformed strongly against the greenback, as risk appetite sharpened. The growth linked dollars had fallen sharply against the greenback earlier in the week, as indications that growth in China is slackening sparked fears that commodity prices could fall.
In the week ahead, market participants will be looking ahead to Friday’s meeting of euro zone finance ministers to discuss the lending capacity of the region’s permanent bailout fund, the European Financial Stability Facility.
Meanwhile, the U.S. is to release data on consumer confidence, pending homes sales, and factory output, all of which will be closely watched in order to gauge the strength of the U.S. economic recovery.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 26
New Zealand is to produce official data on trade balance, the difference in value between imported and exported goods.
In the euro zone, the Ifo Institute for Economic Research is publish a report on German business climate, a leading indicator of economic health, while European Central Bank President Mario Draghi is due to speak later in the day.
Elsewhere, Federal Reserve Chairman Ben Bernanke is scheduled to speak at the National Association for Business Economists 2012 Policy Conference. The U.S. is also to publish industry data on pending home sales, a key gauge of economic health.
Later Monday, Bank of Canada Governor Mark Carney is to speak.
Tuesday, March 27
In the euro zone, a Gfk report is to be published on German consumer climate, an important indicator of consumer spending.
The U.K. is to release a report by the Nationwide Building Society on house price inflation, a leading measure of the housing industry’s health, followed by industry data on retail sales.
The U.S. is to produce a Standard & Poor’s/Case Shiller composite-20 house price inflation report, as well as industry data on consumer confidence.
Later in the day, Fed Chairman Bernanke is due to deliver the third part of a lecture titled "The Federal Reserve and its Role in Today's Economy" at the George Washington University School of Business, in Washington.
Wednesday, March 28
The Reserve Bank of Australia is to publish a financial stability review, which is an assessment of conditions in the financial system and potential risks to financial stability.
In the euro zone, Germany is to release preliminary data on consumer price inflation, which accounts for a majority of overall inflation. The ECB is also to release data on money supply.
Elsewhere in Europe, the U.K. is to release official data on the current account and a final report on gross domestic product, the broadest measure of economic activity and the primary gauge of the economy’s health.
The U.S. is to publish government data on durable goods orders, a leading indicator of production, followed by a report on crude oil stockpiles.
Thursday, March 29
Japan is to produce government data on retail sales, the primary gauge of consumer spending. Meanwhile, the National Bank of New Zealand is to release data on business confidence.
In the euro zone, official data is to be published on German unemployment change, an important signal of overall economic health.
Elsewhere in Europe, the Bank of England is to release data on credit conditions and on net lending to individuals.
Canada is to produce official data on raw materials price inflation, a leading indicator of consumer inflation, followed by government data on the annual budget.
Later Thursday, the U.S. is to publish government data on unemployment claims, a key signal of overall economic health, as well as final data on fourth quarter GDP. Fed Chairman Bernanke is also due to speak.
Friday, March 30
New Zealand is to produce official data on building consents, an important gauge of future construction activity. Meanwhile, Australia is to release industry data on new home sales, while the RBA is to publish a report on private sector credit.
Japan is to publish official data on household spending, which accounts for a majority of overall economic activity, as well as on consumer price inflation in Tokyo. The country is also to produce preliminary data on industrial production, a key indicator of economic health.
Elsewhere, the U.K. is to publish a Gfk report on consumer confidence, while Switzerland is to release data on the KOF economic barometer.
In the euro zone, official data is to be produced on German retail sales and on French consumer spending, followed by a preliminary report on consumer price inflation throughout the single currency bloc.
Later in the day, Canada is to release official data on GDP for January.
The U.S. is to round up the week with government data on personal consumption expenditures and personal spending as well as industry data on the purchasing managers’ index in Chicago. In addition, the University of Michigan is to release revised data on consumer sentiment.