Investing.com - The euro fell to one-month lows against the
broadly stronger dollar on Friday after recent strong U.S.
employment data sparked speculation that the Federal Reserve may
scale back its quantitative easing program.
EUR/USD hit session lows of 1.2936, the pair's lowest since April 5
before settling at 1.2990, 0.40% lower for the day and down 0.64%
for the week.
The pair is likely to find support at 1.2900, the low of April 5
and resistance at 1.3050, Friday's high.
The greenback was boosted as recent strong U.S. employment data
fuelled optimism over an earlier-than-expected end to the Fed's
USD85 billion a month asset purchase program.
Data on Thursday showed that showed that U.S. initial jobless
claims fell to the lowest level since January 2008 in the week
ending May 4.
Earlier this month official data showed that the U.S. economy added
more jobs than forecast in April, pushing the unemployment rate to
a more than four-year low of 7.5%.
The dollar's broad based rally saw the currency advance to its
highest level since October 2008 against the yen on Friday.
The dollar rose above 101 per yen after data showed that Japanese
investors became net purchasers of overseas bonds in the past two
weeks as the Bank of Japan's massive easing program prompted
investors to seek out higher yields overseas to compensate for
lower yields on Japanese government bonds.
The single currency rose to three-year highs against the yen, with
EUR/JPY climbing to highs of 132.26, before settling at 132.01, up
0.58% for the day and gaining 1.60% for the week.
In the coming week, investors will be awaiting preliminary data
from the euro zone and Japan on first quarter economic growth, as
well as the ZEW report on German economic sentiment.
The U.S. is to release official data on retail sales, building
permits, jobless claims and a closely watched report on consumer
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
Monday, May 13
In the euro zone, Italy is to hold an auction of 10-year government
bonds, while the eurogroup of finance ministers are to hold talks
Later in the day, the U.S. is to release official data on retail
sales and business inventories.
Tuesday, May 14
The ZEW Institute is to release its closely watched report on
German economic sentiment, a leading indicator of economic health.
The euro zone is to release official data on industrial production.
Meanwhile, the euro zone's Economic and Financial Affairs Council
is to hold talks in Brussels.
The U.S. is to publish official data on import prices.
Wednesday, May 15
The euro zone is to release preliminary data on first quarter gross
domestic product, the broadest indicator of economic activity and
the leading measure of the economy's health. Germany, France and
Italy are to release individual data on first quarter growth.
The U.S. is to release data on producer price inflation, industrial
production, the capacity utilization rate and a report on
manufacturing activity in New York State.
Thursday, May 16
The euro zone is to produce official data on consumer price
inflation, which accounts for the majority of overall inflation, as
well as data on the trade balance. France is to publish preliminary
data on nonfarm payrolls.
The U.S. is to produce official data on building permits, the
leading indicator of future construction activity as well as data
on housing starts. The U.S. is also to release official data on
consumer inflation, initial jobless claims and the Philly Fed
Friday, May 17
The U.S. is to round up the week with preliminary data from the
University of Michigan on consumer sentiment and inflation
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