Investing.com – Last week the U.S. dollar gained against the euro for the third week, as data indicated that the U.S. economic recovery was gaining momentum and as fresh concerns over the euro zone sovereign debt crisis erupted.
EUR/USD hit 1.3496 on Friday, the pair’s lowest since January 21; the pair subsequently consolidated at 1.3548 by close of trade, slipping 0.09% over the week.
The pair is likely to find support at 1.3448, the low of January 21 and resistance at 1.362, Friday’s high.
Speculation that Portugal would have to follow Ireland in seeking aid from the European Financial Stability Facility mounted as yields on 10-year Portuguese debt climbed above 7%, to hit euro lifetime highs.
Analysts consider 7% to be a major threshold for whether countries in the 17-nation euro zone can handle debt repayments.
Sentiment on the single currency was also hit after a German government spokesman said Friday Bundesbank President Axel Weber will leave office on April 30.
The move took Weber, a known policy hawk, out of the race to succeed Jean- Claude Trichet as president of the European Central Bank when Trichet’s term expires in late October, adding to doubts that euro zone rates will rise in the near future.
Meanwhile, in the U.S., government data showed that initial claims for jobless benefits fell last week to the lowest level since July 2008. They dropped by 36,000, more than forecast, to 383,000, Labor Department figures showed.
The Thomson Reuters/University of Michigan preliminary index of consumer sentiment rose to 75.1, the highest level since June, from 74.2 in January.
In the week ahead, the U.S. is to publish official data in inflation and retail sales while the Federal Reserve is to publish the minutes of its most recent monetary policy meeting. The U.S. is also to publish its weekly report on initial jobless claims.
In the euro zone, Germany is to publish preliminary data on gross domestic product.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 14
The euro zone is to release official data on industrial production, a leading indicator of economic health.
Tuesday, February 15
In the euro zone, Germany is to publish preliminary data on GDP, the broadest measure of economic activity and the primary gauge of the economy's health. The euro zone is also to publish preliminary data on the GDP of the wider 17-nation currency bloc.
Also Tuesday, the ZEW Centre for Economic Research is to publish a report on German economic sentiment.
The U.S. is to publish government data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity. The nation is also to publish a report on manufacturing activity in the state of New York as well as data on foreign investments in the U.S. and a report on import prices.
Wednesday, February 16
The U.S. is to publish official data on producer price inflation, a leading indicator of consumer inflation. The nation is also to publish government data on building permits, an excellent gauge of future construction activity, as well as reports on housing starts and industrial production.
Later in the day, the Federal Reserve is to publish the minutes of its most recent monetary policy committee meeting, providing in-depth insights into the economic and financial conditions that influenced the vote on where to set interest rates.
Thursday, February 17
The euro zone is to publish official data on its current account, which is directly linked to currency demand.
Also Thursday, the U.S. is to publish its weekly report in initial jobless claims, a leading indicator of economic health. The nation is also to publish official data on consumer price inflation, which accounts for a majority of overall inflation and a report on manufacturing activity in the city of Philadelphia.
Meanwhile, Federal Reserve Chairman, Ben Bernanke, is to testify before Congress; his comments will be closely watched as they are often used to drop subtle clues regarding future monetary policy.
Friday, February 18
The euro zone is to publish official data on German producer price inflation, a leading indicator of consumer inflation.
Also Friday, Federal Reserve Chairman Ben Bernanke is to deliver a speech at a public engagement; his remarks will be closely scrutinized for any hints to the possible future direction of monetary policy.
EUR/USD hit 1.3496 on Friday, the pair’s lowest since January 21; the pair subsequently consolidated at 1.3548 by close of trade, slipping 0.09% over the week.
The pair is likely to find support at 1.3448, the low of January 21 and resistance at 1.362, Friday’s high.
Speculation that Portugal would have to follow Ireland in seeking aid from the European Financial Stability Facility mounted as yields on 10-year Portuguese debt climbed above 7%, to hit euro lifetime highs.
Analysts consider 7% to be a major threshold for whether countries in the 17-nation euro zone can handle debt repayments.
Sentiment on the single currency was also hit after a German government spokesman said Friday Bundesbank President Axel Weber will leave office on April 30.
The move took Weber, a known policy hawk, out of the race to succeed Jean- Claude Trichet as president of the European Central Bank when Trichet’s term expires in late October, adding to doubts that euro zone rates will rise in the near future.
Meanwhile, in the U.S., government data showed that initial claims for jobless benefits fell last week to the lowest level since July 2008. They dropped by 36,000, more than forecast, to 383,000, Labor Department figures showed.
The Thomson Reuters/University of Michigan preliminary index of consumer sentiment rose to 75.1, the highest level since June, from 74.2 in January.
In the week ahead, the U.S. is to publish official data in inflation and retail sales while the Federal Reserve is to publish the minutes of its most recent monetary policy meeting. The U.S. is also to publish its weekly report on initial jobless claims.
In the euro zone, Germany is to publish preliminary data on gross domestic product.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 14
The euro zone is to release official data on industrial production, a leading indicator of economic health.
Tuesday, February 15
In the euro zone, Germany is to publish preliminary data on GDP, the broadest measure of economic activity and the primary gauge of the economy's health. The euro zone is also to publish preliminary data on the GDP of the wider 17-nation currency bloc.
Also Tuesday, the ZEW Centre for Economic Research is to publish a report on German economic sentiment.
The U.S. is to publish government data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity. The nation is also to publish a report on manufacturing activity in the state of New York as well as data on foreign investments in the U.S. and a report on import prices.
Wednesday, February 16
The U.S. is to publish official data on producer price inflation, a leading indicator of consumer inflation. The nation is also to publish government data on building permits, an excellent gauge of future construction activity, as well as reports on housing starts and industrial production.
Later in the day, the Federal Reserve is to publish the minutes of its most recent monetary policy committee meeting, providing in-depth insights into the economic and financial conditions that influenced the vote on where to set interest rates.
Thursday, February 17
The euro zone is to publish official data on its current account, which is directly linked to currency demand.
Also Thursday, the U.S. is to publish its weekly report in initial jobless claims, a leading indicator of economic health. The nation is also to publish official data on consumer price inflation, which accounts for a majority of overall inflation and a report on manufacturing activity in the city of Philadelphia.
Meanwhile, Federal Reserve Chairman, Ben Bernanke, is to testify before Congress; his comments will be closely watched as they are often used to drop subtle clues regarding future monetary policy.
Friday, February 18
The euro zone is to publish official data on German producer price inflation, a leading indicator of consumer inflation.
Also Friday, Federal Reserve Chairman Ben Bernanke is to deliver a speech at a public engagement; his remarks will be closely scrutinized for any hints to the possible future direction of monetary policy.