Investing.com – Last week saw the euro post its third consecutive weekly decline against the U.S. dollar, as investors shunned the single currency amid concerns that Greece’s sovereign debt crisis could deepen.
EUR/USD hit 1.4126 on Thursday, the pair’s lowest since June 17; the pair subsequently consolidated at 1.4186 by close of trade on Friday, shedding 0.65% over the week.
The pair is likely to find support at 1.4072, the low of June 16 and a three-week low and resistance at 1.4356, last Thursday’s high.
Contagion fears mounted on Friday after trading in Italian bank shares was suspended briefly after ratings agency Moody's said it was considering downgrading the creditworthiness of 13 of the country's banks.
Greece received a EUR110 billion bailout from the European Union and International Monetary Fund in May 2010 but now needs a second bailout in order to avert a sovereign debt default.
For Greece to get the money, the country's parliament must approve a EUR28.4 billion austerity package next week.
On Friday, Socialist deputy Thomas Robopoulos said he wasn't prepared to vote for the government's planned austerity package.
The greenback was boosted after Federal Reserve Chairman Ben Bernanke confirmed Wednesday that the bank was winding up its monetary easing program at the end of this month and said further easing was unlikely.
But Bernanke said there was “uncertainty” about how much of the recent U.S. slowdown was permanent or transitory.
The Fed cut its cut its 2011 economic growth forecast for the U.S. to a range of 2.7% to 2.9%, down from a previous estimate of 3.1% to 3.3%. Policymakers also cut their outlook for growth in 2012 and raised estimates for unemployment.
On Thursday, U.S. data showed that the number of people in the filing for initial jobless benefits rose to a seasonally adjusted 429,000 in the week ending June 18, from 414,000 the previous week, confounding expectations for a decline to 410,000.
In the week ahead, the focus looks likely to remain on Greece, with the Greek parliament due to hold its critical vote on austerity measures on Wednesday and Thursday. Meanwhile, a relatively small amount of U.S. data is scheduled for release, with the main highlight looking likely to be Friday’s ISM manufacturing index.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, June 27
The U.S. is to publish government data on personal income and expenditure as well as a consumer price index.
Tuesday, June 28
In the euro zone, market research group Gfk is to publish an index of German consumer climate, a leading indicator of consumer spending. The euro zone is also to publish official data on German import prices as well as preliminary data on German consumer price inflation.
The U.S. is to publish industry data on house price inflation, a leading indicator of the housing industry's health as well as a report on consumer confidence, a leading indicator of consumer spending.
Later in the day, European Central Bank President Jean-Claude Trichet is to speak in Brussels; his comments will be closely watched for any clues to the future possible direction of monetary policy.
Wednesday, June 29
The U.S. is to publish industry data on pending home sales as well as official data on crude oil stockpiles.
Thursday, June 30
The euro zone is to publish preliminary data on consumer price inflation, which accounts for a majority of overall inflation. Meanwhile, Germany is to publish official data on retail sales and employment change, while France is to publish official data on consumer spending.
Also Thursday, ECB President Jean-Claude Trichet is to speak; his comments will be closely watched for any clues to the future possible direction of monetary policy.
The U.S. is to publish its weekly government report on initial jobless claims, as well as data on manufacturing activity in the Chicago region.
Friday, July 1
The euro zone is to publish official data on the unemployment rate. Meanwhile, the U.S. is to round up the week with a report by the Institute of Supply Management on manufacturing activity and revised data on consumer sentiment and inflation expectations from the University of Michigan.
EUR/USD hit 1.4126 on Thursday, the pair’s lowest since June 17; the pair subsequently consolidated at 1.4186 by close of trade on Friday, shedding 0.65% over the week.
The pair is likely to find support at 1.4072, the low of June 16 and a three-week low and resistance at 1.4356, last Thursday’s high.
Contagion fears mounted on Friday after trading in Italian bank shares was suspended briefly after ratings agency Moody's said it was considering downgrading the creditworthiness of 13 of the country's banks.
Greece received a EUR110 billion bailout from the European Union and International Monetary Fund in May 2010 but now needs a second bailout in order to avert a sovereign debt default.
For Greece to get the money, the country's parliament must approve a EUR28.4 billion austerity package next week.
On Friday, Socialist deputy Thomas Robopoulos said he wasn't prepared to vote for the government's planned austerity package.
The greenback was boosted after Federal Reserve Chairman Ben Bernanke confirmed Wednesday that the bank was winding up its monetary easing program at the end of this month and said further easing was unlikely.
But Bernanke said there was “uncertainty” about how much of the recent U.S. slowdown was permanent or transitory.
The Fed cut its cut its 2011 economic growth forecast for the U.S. to a range of 2.7% to 2.9%, down from a previous estimate of 3.1% to 3.3%. Policymakers also cut their outlook for growth in 2012 and raised estimates for unemployment.
On Thursday, U.S. data showed that the number of people in the filing for initial jobless benefits rose to a seasonally adjusted 429,000 in the week ending June 18, from 414,000 the previous week, confounding expectations for a decline to 410,000.
In the week ahead, the focus looks likely to remain on Greece, with the Greek parliament due to hold its critical vote on austerity measures on Wednesday and Thursday. Meanwhile, a relatively small amount of U.S. data is scheduled for release, with the main highlight looking likely to be Friday’s ISM manufacturing index.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, June 27
The U.S. is to publish government data on personal income and expenditure as well as a consumer price index.
Tuesday, June 28
In the euro zone, market research group Gfk is to publish an index of German consumer climate, a leading indicator of consumer spending. The euro zone is also to publish official data on German import prices as well as preliminary data on German consumer price inflation.
The U.S. is to publish industry data on house price inflation, a leading indicator of the housing industry's health as well as a report on consumer confidence, a leading indicator of consumer spending.
Later in the day, European Central Bank President Jean-Claude Trichet is to speak in Brussels; his comments will be closely watched for any clues to the future possible direction of monetary policy.
Wednesday, June 29
The U.S. is to publish industry data on pending home sales as well as official data on crude oil stockpiles.
Thursday, June 30
The euro zone is to publish preliminary data on consumer price inflation, which accounts for a majority of overall inflation. Meanwhile, Germany is to publish official data on retail sales and employment change, while France is to publish official data on consumer spending.
Also Thursday, ECB President Jean-Claude Trichet is to speak; his comments will be closely watched for any clues to the future possible direction of monetary policy.
The U.S. is to publish its weekly government report on initial jobless claims, as well as data on manufacturing activity in the Chicago region.
Friday, July 1
The euro zone is to publish official data on the unemployment rate. Meanwhile, the U.S. is to round up the week with a report by the Institute of Supply Management on manufacturing activity and revised data on consumer sentiment and inflation expectations from the University of Michigan.