Investing.com - " The euro ended the week close to two-year
highs against the dollar on Friday as the dollar remained under
pressure on the view that the Federal Reserve is likely to maintain
the current pace of its asset purchase program well into next year.
EUR/USD ended Friday's session at 1.3805, 0.02% higher for the day,
after rising as high as 1.3833, the highest since November 2011
earlier. For the week, the pair gained 0.97%.
The pair is likely to find support at 1.3740, the low of October 23
and resistance at 1.3850.
The euro eased back from session highs against the dollar after a
report showed that the German Ifo business confidence index
unexpectedly fell for the first time in six months in October.
The report came one day after data on euro zone manufacturing and
service sector activity indicated that the recovery in the region
In the U.S., data on Friday showed that core durable goods orders
unexpectedly fell 0.1% in September, the third consecutively
A separate report showed that the University of Michigan U.S.
consumer sentiment index was revised down to a 10-month low of 73.2
from a final reading of 77.5 in September.
The data cemented expectations that the Federal Reserve will delay
plans to start tapering its stimulus program until at least the
beginning of next year.
Data released earlier in the week showing that U.S. jobs growth had
slowed in September, even before the start of the 16-day government
shutdown, prompted investors to re-evaluate expectations over the
timing of a possible reduction to the Fed's stimulus program.
The Fed surprised investors when it unexpectedly refrained from
scaling back asset purchases at its policy setting meeting in
September, saying it wanted more evidence of an economic recovery.
In the week ahead, investors will be focused on the outcome of
Wednesday's Federal Reserve policy setting meeting. Euro zone
reports on inflation and unemployment will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
Monday, October 28
The U.S. is to produce reports on industrial production and the
capacity utilization rate, as well as private sector data on
pending home sales.
Tuesday, October 29
The euro zone is to release the results of the Gfk index of
consumer climate, an important economic indicator.
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. The U.S. is also to publish data on producer
price inflation and a report on consumer confidence, a leading
Wednesday, October 30
Germany is to release official data on the change in the number of
people unemployed, a leading economic indicator, as well as
preliminary data on consumer inflation.
Elsewhere in the euro zone, Spain is to publish a preliminary
estimate of third quarter gross domestic product, the broadest
indicator of economic activity and the leading indicator of
The U.S. is to release the ADP report on nonfarm payrolls and
official data on consumer price inflation.
Later Wednesday, the Federal Reserve is to announce its federal
funds rate and publish its rate statement. The statement is to be
followed by a closely watched press conference with Chairman Ben
Thursday, October 31
The euro zone is to produce preliminary data on consumer inflation
and a separate report on the unemployment rate, a leading indicator
of economic health.
The U.S. is to release data on initial jobless claims and a report
on manufacturing activity in the Chicago region.
Friday, November 1
The U.S. is to round up the week with a report from the Institute
of Supply Management on manufacturing activity.
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