Investing.com - The dollar ended the week close to three-week
lows against the euro on Friday as dovish Federal Reserve minutes
tempered expectations that U.S. interest rates would rise sooner
than had been anticipated.
EUR/USD ended Friday's session at 1.3884, after touching session
highs of 1.3905 earlier. The pair ended the week with gains of
1.04%, the largest weekly increase since September.
The pair is likely to find support at 1.3835, Thursday's low and
resistance at 1.3900.
The euro eased back from session highs against the dollar on
Friday after data showed that U.S. producer prices rose 0.5% in
March, the largest increase in nine months and ahead of
expectations for a 0.1% increase.
A separate report showed that the University of Michigan's U.S.
consumer sentiment index rose to 82.6 this month, its highest level
But the greenback remained under pressure after the minutes of
the Fed's March meeting indicated that an interest rate increase is
unlikely to be warranted for some time.
The Fed's March meeting minutes, released on Wednesday, showed
that policymakers discussed whether to keep interest rates at
record lows until inflation moves higher, and did not elaborate on
a possible timeframe for when rates could start to rise.
Last month the U.S. central bank reduced the monthly pace of
asset purchases by $10 billion, to $55 billion, and repeated it is
likely to continue paring the program in "further measured
In mid-March Fed Chair Janet Yellen had indicated that interest
rates could start to rise around six months after the end of the
Fed's bond purchasing program, suggesting a rate hike could occur
in the early part of 2015.
The single currency continued to remain supported after comments
by European Central Bank officials earlier in the week tempered
expectations for quantitative easing.
ECB governing council member Yves Mersch said Monday there is no
immediate risk of deflation in the euro zone and therefore no
urgent need to implement large-scale bond purchases.
Separately, Bundesbank president Jens Weidmann said that
monetary policy cannot solve the financial crisis, and urged euro
zone political leaders to keep reforming their economies.
In the week ahead, market watchers will be focusing on speeches
by Fed Chair Janet Yellen, as well as reports on U.S. retail sales
and housing starts. Meanwhile, Germany is to release its ZEW
economic sentiment index.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the
Monday, April 14
The euro zone is to release data on industrial production.
The U.S. is to produce data on retail sales, the government
measure of consumer spending, which accounts for the majority of
overall economic activity.
Tuesday, April 15
The ZEW Institute is to release its closely watched report on
German economic sentiment, a leading indicator of economic
Later Tuesday, Fed Chair Janet Yellen is to speak.
Wednesday, April 16
The euro zone is to release revised data on consumer price
The U.S. is to produce reports on housing starts, building
permits and industrial production.
Later Wednesday, Fed Chair Janet Yellen is to speak at an event
in New York.
Thursday, April 17
The euro zone is to publish data on the current account, while
Germany is to produce data on producer price inflation.
The U.S. is to publish data on initial jobless claims and a
report on manufacturing activity in the Philadelphia region.
Friday, April 18
Markets in Europe and the U.S. will be closed for the Good
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