Investing.com – The euro slumped to a 4-year low against the U.S. dollar last week, after Germany banned naked short selling in some securities, then bounced back to make its first weekly gain in six weeks.
EUR/USD hit 1.2144 on Thursday, its lowest since April 17, 2006; the pair subsequently clawed back to reach 1.2569 at the close of trade on Friday, advancing 1.58% on a weekly basis.
The pair is likely to find support at 1.2144 and resistance at 1.3094, the high of May 10.
The euro's rebound came as German lawmakers approved their country's contribution to a EUR 750 billion emergency aid package aimed at combating the debt crisis that has engulfed the euro zone in recent months.
Next week will see the publication of key reports on the euro zone industrial sector, German consumer sentiment, French consumer spending and German consumer price inflation.
In the United States, meanwhile, important data will be released on existing and new home sales, durable goods orders, gross domestic product and initial jobless claims. A slew of other reports will also be published on U.S. consumer confidence, manufacturing, crude oil inventories and personal spending. The Chairman of the Federal Reserve, Ben Bernanke, is also due to speak at a public engagement.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect EUR/USD.
Monday, May 24
An industry group will release key data on existing U.S. home sales, a leading indicator of economic health.
Markets in Germany and France will be closed, meanwhile, as the countries mark Whit Monday.
Tuesday, May 25
Italy will publish monthly data on retail sales. The European Union will then release monthly data on the change in the total value of new purchase orders placed with manufacturers in the euro zone, a key indicator of production.
A research group will publish a closely watched report on U.S. consumer confidence. The data, which is based on a survey of about 5,000 households, is an important signal of consumer spending.
Wednesday, May 26
The Gfk market research firm will release data on German consumer sentiment. The report is based on a survey of about 2,000 consumers that asks about the relative level of past and future economic conditions. Also Wednesday, France will publish a report on consumer spending and Belgium's central bank will release a monthly report on business sentiment in the country.
Meanwhile, the U.S. will publish key data on durable goods orders, a leading indicator of production. The country will also release a report on new home sales. The report, which shows an annualized number of new single-family homes that were sold during the previous month, is a key signal of overall economic health.
Also Wednesday, an industry group will publish data on U.S. mortgage applications and Bernanke is due to speak at a conference in Tokyo.
Thursday, May 27
Thursday, the U.S. will release data on initial jobless claims, a key indicator of overall economic health. The country will also publish a preliminary report on its gross domestic product, the broadest measure of economic activity.
Germany, meanwhile, will publish preliminary data on consumer price inflation in the euro zone's largest economy.
Friday, May 28
Germany will publish a monthly report on the price of imported goods purchased domestically. The U.S. will then release data on consumer price inflation and personal income and spending.
An industry group will also publish a report on the manufacturing sector in the Chicago area, and the University of Michigan will release revised data on U.S. consumer sentiment and inflation expectations.
EUR/USD hit 1.2144 on Thursday, its lowest since April 17, 2006; the pair subsequently clawed back to reach 1.2569 at the close of trade on Friday, advancing 1.58% on a weekly basis.
The pair is likely to find support at 1.2144 and resistance at 1.3094, the high of May 10.
The euro's rebound came as German lawmakers approved their country's contribution to a EUR 750 billion emergency aid package aimed at combating the debt crisis that has engulfed the euro zone in recent months.
Next week will see the publication of key reports on the euro zone industrial sector, German consumer sentiment, French consumer spending and German consumer price inflation.
In the United States, meanwhile, important data will be released on existing and new home sales, durable goods orders, gross domestic product and initial jobless claims. A slew of other reports will also be published on U.S. consumer confidence, manufacturing, crude oil inventories and personal spending. The Chairman of the Federal Reserve, Ben Bernanke, is also due to speak at a public engagement.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect EUR/USD.
Monday, May 24
An industry group will release key data on existing U.S. home sales, a leading indicator of economic health.
Markets in Germany and France will be closed, meanwhile, as the countries mark Whit Monday.
Tuesday, May 25
Italy will publish monthly data on retail sales. The European Union will then release monthly data on the change in the total value of new purchase orders placed with manufacturers in the euro zone, a key indicator of production.
A research group will publish a closely watched report on U.S. consumer confidence. The data, which is based on a survey of about 5,000 households, is an important signal of consumer spending.
Wednesday, May 26
The Gfk market research firm will release data on German consumer sentiment. The report is based on a survey of about 2,000 consumers that asks about the relative level of past and future economic conditions. Also Wednesday, France will publish a report on consumer spending and Belgium's central bank will release a monthly report on business sentiment in the country.
Meanwhile, the U.S. will publish key data on durable goods orders, a leading indicator of production. The country will also release a report on new home sales. The report, which shows an annualized number of new single-family homes that were sold during the previous month, is a key signal of overall economic health.
Also Wednesday, an industry group will publish data on U.S. mortgage applications and Bernanke is due to speak at a conference in Tokyo.
Thursday, May 27
Thursday, the U.S. will release data on initial jobless claims, a key indicator of overall economic health. The country will also publish a preliminary report on its gross domestic product, the broadest measure of economic activity.
Germany, meanwhile, will publish preliminary data on consumer price inflation in the euro zone's largest economy.
Friday, May 28
Germany will publish a monthly report on the price of imported goods purchased domestically. The U.S. will then release data on consumer price inflation and personal income and spending.
An industry group will also publish a report on the manufacturing sector in the Chicago area, and the University of Michigan will release revised data on U.S. consumer sentiment and inflation expectations.