Investing.com - The euro rose to three-week highs against the
dollar on Friday as stronger-than-forecast euro zone fourth quarter
growth data bolstered the outlook for the recovery in the euro
EUR/USD hit 1.3715, the strongest since January 27 and was last
up 0.09% to 1.3691. For the week, the pair gained 0.35%.
The pair was likely to find support at 1.3640 and resistance at
1.3775, the high of January 2.
The common currency was boosted after data showed that the euro
zone economy expanded 0.3% in the three months to December and
expanded 0.5% from the same period a year earlier.
Market expectations had been for quarterly growth of 0.2% and a
year-over-year increase of 0.5%.
Germany's gross domestic product rose 0.4% in the fourth
quarter, ahead of expectations for 0.3% growth, while France
avoided falling back into a recession, posting growth of 0.3% in
the final three months of 2013.
The data eased concerns that the European Central Bank could
tighten monetary policy at its next meeting, after President Mario
Draghi said last week the bank would wait for more information
before taking any action.
The dollar came under pressure after data on Friday showed that
U.S. factory output fell unexpectedly in January, clouding the
outlook for the economic recovery.
U.S. industrial production fell 0.3% from a month earlier in
January, compared to expectations for a 0.3% gain.
The unexpectedly weak data fuelled concerns that inclement
winter weather is acting as a drag on growth.
A separate report showed that the preliminary reading of the
University of Michigan's consumer sentiment index for February came
in at 81.2, unchanged from the final reading in January. Analysts
had expected the index to tick down to 80.6.
The mixed data did little to alter expectations that the Federal
Reserve will continue to scale back its stimulus program.
In her first Congressional testimony since her appointment as
Fed Chair, Janet Yellen said Wednesday that the central bank would
continue to gradually reduce the pace of its asset purchase
She also reiterated that the Fed plans to hold interest rates at
zero "well past" the time the jobless rate falls below 6.5%.
In the week ahead, euro zone data on private sector output and
the ZEW index of German economic sentiment will be closely watched.
Meanwhile, the U.S. is to publish data on inflation, as well as
reports on the housing sector and manufacturing activity.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the
Monday, February 17
In the euro zone, the eurogroup of finance ministers is to hold
a meeting in Brussels.
Markets in the U.S. are to remain closed for the Presidents Day
Tuesday, February 18
The euro zone is to publish data on the current account.
Meanwhile, the ZEW Institute is to release its closely watched
report on German economic sentiment, a leading indicator of
The U.S. is to release data on manufacturing activity in the
Wednesday, February 19
The U.S. is to publish reports on building permits, housing
starts and producer price inflation.
Meanwhile, the Federal Reserve is to publish the minutes of its
most recent policy setting meeting.
Thursday, February 20
The euro zone is to publish closely watched data on
manufacturing and service sector activity, while Germany and France
are to publish individual reports. Germany is also to publish data
on producer price inflation.
The U.S. is to release the weekly report on initial jobless
claims and data on consumer price inflation. The nation is also to
release data on manufacturing activity in the Philadelphia
Friday, February 21
The U.S. is to round up the week with private sector data on
existing homes sales.
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