Investing.com - The euro extended losses against the dollar into
a second session on Friday, falling to a one-month low at the
close, one day after the European Central Bank flagged possible
monetary easing as soon as next month.
EUR/USD was at 1.3756 late Friday, the weakest level since April
8, down 0.60% on the day. For the week, the pair was off 0.85%.
The pair is likely to find support at 1.3695 and resistance at
1.3843, Friday's high.
The euro fell from two-and-a-half year highs against the dollar
on Thursday after ECB President Mario Draghi said the bank is
"comfortable" with acting to shore up growth and stop inflation
from falling too low at its next meeting in June.
The comments came after the ECB left rates on hold, as
Draghi also said the strength of the euro was "a serious
concern" and added that the bank would be closely monitoring
exchange rate developments.
The single currency came under additional pressure after data on
Friday showed that German exports fell 1.8% from a month earlier in
March and the country posted a smaller-than-forecast trade
The euro dropped to two-month lows against the yen, with EUR/JPY
at 140.09 late Friday, the weakest since March 4. The pair ended
the week down 1.15%.
The U.S. dollar weakened against the other major currencies
earlier in the week after Federal Reserve Chair Janet Yellen struck
a dovish tone on the economy during testimony to the Joint Economic
Committee of Congress.
Speaking Wednesday, Ms. Yellen said that a high degree of
monetary accommodation remains warranted given the slack in the
The Fed chief also said the bank expects economic growth to
accelerate this year despite the slowdown in the first quarter but
warned that the recent housing market slowdown "could prove more
protracted than currently expected."
In the week ahead, investors will be looking ahead to
preliminary data on first quarter growth in the euro zone, while
the U.S. is to publish reports on retail sales, consumer prices and
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the
Monday, May 12
The U.S. is to publish data on the federal budget balance.
Tuesday, May 13
The ZEW Institute is to release its closely watched report on
German economic sentiment, a leading indicator of economic
The U.S. is to produce data on retail sales, as well as reports
on import prices and business inventories.
Wednesday, May 14
The euro zone is to produce data on industrial production.
Later Wednesday, the U.S. is to release data on producer price
Thursday, May 15
The euro zone is to publish preliminary data on first quarter
gross domestic product, the broadest indicator of economic activity
and the leading indicator of economic growth. The bloc is also to
produce revised data on consumer inflation.
The U.S. is to release data on initial jobless claims, consumer
inflation and industrial production, as well as a report on
manufacturing activity in the Philadelphia region.
Friday, May 16
The U.S. is to round up the week with reports on building
permits and housing starts, and a preliminary reading on consumer
sentiment from the University of Michigan.
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