Forex – EUR/USD weekly outlook: September 13-17

Published 09/12/2010, 12:09 PM
EUR/USD
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Investing.com – Last week saw the euro tumble to an 8-day low against the U.S. dollar on Friday, amid ongoing fears over the health of the regions banking sector after media reports cast doubt over the results of euro zone bank stress test results.

EUR/USD hit 1.2644 on Friday, the pair's lowest since August 31; the pair subsequently consolidated at 1.2677, by close of trade on Friday, tumbling 1.68% over the week.

The pair is likely to find short-term support at 1.2625, the low of August 31 and resistance at 1.2875, the high of September 07.

On Tuesday, the Wall Street Journal reported that euro zone bank stress test results understated sovereign debt holdings in some banks. Following the report, Irish and Portuguese 10-year government bond yields reached record highs versus benchmark German bunds.

In the week ahead, the U.S. is to release data on retail sales, industrial production and consumer prices. The country is also to release key data on initial jobless claims.

Meanwhile, in Europe the ZEW Centre for Economic Research is to release a key report on German economic sentiment. The euro zone is also to release data on consumer prices and industrial production.

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

Monday, September 13

The U.S. will begin the week by releasing its federal budget balance, the difference in value between the federal government's incomes and spending during the previous month.

Tuesday, September 14


The U.S. will release data on retail sales, a primary gauge of consumer spending, which accounts for the majority of all economic activity.

Also Tuesday, ZEW Centre for Economic Research is to release a key report on German economic sentiment and consumer sentiment in the wider euro zone region. Meanwhile, the euro zone also is due to release data on industrial production, a leading indicator of economic health.

Wednesday, September 15

In the U.S., the Federal Reserve Bank of New York is due to release key data on manufacturing sector activity, while the Federal Reserve is to produce information on its capacity utilization rate, the percentage of available resources being utilized by manufacturers, mines, and utilities.

The U.S. is also due to release key data on import prices, industrial production and crude oil inventories.

The euro zone is to release data on consumer price inflation, a leading indicator of economic growth. The region is also to release data on employment change, the change in the number of people employed.

 Thursday, September 16


The U.S. is to release key weekly data on initial jobless claims, after which the U.S. Treasury is to publish a report on TIC Long-Term purchases, which measures the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreigners.
 
Later in the day, the Federal Reserve Bank of Philadelphia is due to release key data on the manufacturing. The U.S. is also to produce data on the country's current account and producer price index, a leading indicator of consumer inflation.

Meanwhile, the euro zone is to publish data on the regions trade balance, the difference in value between imported and exported goods and services.

Friday, September 17

The U.S. is to end the week by producing key data on its consumer price index, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.

Meanwhile, the euro zone will round up the week with data from Germany on producer price inflation, a leading indicator of economic growth and data on the regions current account, the difference in value between imported and exported goods, services, income flows, and unilateral transfers.

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