The euro edged higher against the dollar on Friday, as the dollar took a breather following a rally in the previous two sessions, sparked by prospects for an earlier than anticipated rate hike by the Federal Reserve. Forex - EUR/USD weekly outlook: March 24 - 28Euro trims weekly loss against dollar on Friday EUR/USD edged up 0.12% to 1.3793 on Friday, after falling to two-week lows of 1.3748 on Thursday. For the week, the pair lost 0.94%. The pair is likely to find support at 1.3748, Thursday’s low and resistance at 1.3844, Thursday’s high. The single currency was boosted after data on Friday showed that the region’s current account surplus rose to a record €25.3 billion in January. A separate report showed that euro zone consumer confidence improved more than expected in March. The European Commission reported that its sentiment index rose to -9.3 from a reading of -12.7 in February. Analysts had expected the index to tick up to -12.4. Demand for the dollar continued to be underpinned by speculation that the U.S. central bank could raise rates as soon as early next year. The dollar rallied on Wednesday after Fed Chair Janet Yellen indicated that the bank could begin to raise interest rates about six months after its bond-buying program winds up, which is expected to happen this fall. The comments prompted investors to bring forward expectations for a rate hike to as early as March of next year. The Fed also reduced its monthly bond purchases by an additional $10 billion to $55 billion at the conclusion of its two-day policy meeting, and said there was “underlying strength in the broader economy.” In the coming week, investors will be looking ahead to U.S. data from the housing sector, as well as reports on consumer confidence and durable goods. Euro zone data on private sector activity and preliminary inflation data from Germany will also be in focus. Ahead of the coming week, Investing has compiled a list of these and other significant events likely to affect the markets. Monday, March 24 The euro zone is to release preliminary data on manufacturing and service sector activity, a leading indicator of economic health. Germany and France are also to release The U.S. is to release preliminary data on manufacturing activity. Tuesday, March 25 In the euro zone, Germany is to release the Ifo report on business climate. Later Tuesday, the U.S. is to release report on house price inflation and consumer confidence, as well as official data on new home sales. Wednesday, March 26 In the euro zone, Germany is to release a report on Gfk consumer climate. The U.S. is to release data on durable goods orders, a leading indicator of production. Thursday, March 27 The euro zone is to release data on M3 money supply. The U.S. is to publish final data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and private sector data on pending home sales. Friday, March 28 In the euro zone, Germany is to produce preliminary data on consumer inflation, while France is to publish data on consumer spending. The U.S. is to round up the week with a report on personal spending and revised data on consumer sentiment.
Posted on: Sun, 23 Mar 2014 17:31:06 +0000