Investing.com - The euro fell to eight month lows against the
stronger dollar on Friday and was close to multi-month lows against
the yen and the pound as concerns over the divergence in monetary
policy between the European Central Bank and other central banks
pressured the single currency lower.
EUR/USD was down 0.25% to 1.3429 at the close, reaching the
lowest level since November. For the week, the pair lost 0.74%.
The pair is likely to find support at around 1.3400 and
resistance at 1.3475.
The drop in the euro came after a report showed that Germany's
Ifo business climate index dropped to 108.0 in July, missing
estimates for a reading of 109.4. It was the third consecutive
The data added concerns over the outlook for the euro zone's
largest economy. The euro has come under pressure since the ECB cut
rates to record lows on June 5, in a bid to stave off the risk of
deflation and shore up growth in the region.
Sentiment on the single currency was also hit by concerns that
tougher sanctions on Russia would have a negative impact on the
outlook for growth in the currency bloc, which has close trade ties
The greenback was boosted as better than expected data on
durable goods orders for June added to signs that the U.S. economy
The Commerce Department reported a rise of 0.7% in orders of
long lasting goods such as machinery and electronic products,
compared to forecasts of 0.5%. Durable goods orders fell by 1.0% in
Demand for the dollar has been underpinned since Federal Reserve
Chair Janet Yellen indicated earlier this month that U.S. interest
rates could rise sooner if the recovery in the labor market
Elsewhere Friday, EUR/JPY was down 0.23% to 136.75 late Friday,
not far from the five month lows of 136.35 reached in the previous
EUR/GBP slid 0.18% to 0.7910, not far from Wednesday's 22-month low
In the week ahead investors will be focusing on U.S. data on
second-quarter gross domestic product and an interest rate decision
by the Federal Reserve on Wednesday, while Friday's nonfarm
payrolls report for July will also be closely watched.
The euro zone is to release preliminary data on consumer prices
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the
Monday, July 28
The U.S. is to release data on pending home sales.
Tuesday, July 29
The U.S. is to publish reports on house price inflation and
Wednesday, July 30
In the euro zone, Germany is to release preliminary data on
consumer price inflation, while Spain is to publish flash estimates
on consumer inflation and second quarter economic growth.
The U.S. is to release the ADP report on private sector job
creation, which leads the government's nonfarm payrolls report by
two days. The U.S. is also to publish revised data on second
Later Wednesday, the Federal Reserve is to announce its federal
funds rate and publish its rate statement.
Thursday, July 31
The euro zone is to release preliminary data on consumer
inflation and unemployment, while Germany is to publish data on
retail sales and unemployment.
The U.S. is to release the weekly report on initial jobless
claims, as well as data on manufacturing activity in the Chicago
Friday, August 1
The U.S. is to round up the week with what will be closely
watched government data on nonfarm payrolls and the unemployment
rate, while the Institute of Supply Management is to release data
on manufacturing activity.
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