Investing.com - The dollar ended the week sharply higher against
the other major currencies on Friday after the Federal Reserve said
Wednesday it could start scaling back its bond buying program by
the end of the year.
The dollar strengthened against the yen, with USD/JPY climbing
3.82% for the week to settle at 97.88, the largest weekly gain
since December 2009.
The euro fell against the dollar, with EUR/USD dropping 1.7% for
the week, to close at 1.3119, the biggest weekly decline since
The dollar rallied after Fed Chairman Ben Bernanke said the bank
could begin slowing asset purchases by the end of 2013 and wind
them down completely by the middle of 2014 if the economy picks up
as the central bank expects.
The bank said it expects the U.S. economy to grow between 2.3% and
2.6% in 2013. The Fed also said it expects the unemployment rate to
fall to between 6.5% and 6.8% by the end of 2014 and inflation to
edge closer to its 2% target.
The euro came under pressure on Friday after Greece's Democratic
Left party withdrew from the coalition government in protest over
planned public sector layoffs, leaving the government with only a
slim majority in parliament.
The Canadian dollar fell to 20-month lows against the greenback on
Friday after official data showed that Canadian consumer inflation
rose less-than-expected in May, and Canadian retail sales came in
below expectations in April.
USD/CAD hit 1.0487 on Friday, the pair's highest since late
November 2011, before trimming gains to settle at 1.0451, up 2.67%
for the week.
The Australian dollar ended the week close to 33-month lows against
the greenback as a combination of concerns over an end to the Fed's
assets purchase program and fears over a deepening slowdown in
AUD/USD hit 0.9161 on Thursday, the pair's lowest since September
2010, before settling at 0.9217 by the close of trade on Friday,
down 3.58% for the week.
The New Zealand dollar fell to one-year lows against the greenback
on Friday, with NZD/USD falling 3.76% for the week.
In the week ahead, investors will be closely watching U.S. data on
durable goods orders, jobless claims and consumer confidence for
signs that the economic recovery is on track. A European Union
economic summit will also be in focus as concerns over the economic
outlook for the euro zone linger.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
Monday, June 24
The Ifo institute is to release a report on German business
climate, a leading indicator of economic health.
Tuesday, June 25
The U.K. is to publish industry data on mortgage approvals, a
leading indicator of demand in the housing sector. Meanwhile, Bank
of England policymakers are to testify on inflation and the
economic outlook before the parliamentary treasury committee.
In the euro zone, Italy is to hold an auction of 10-year government
The U.S. is to publish official data on durable goods orders, a
leading indicator of production, as well as closely watched reports
on consumer confidence and new home sales.
Wednesday, June 26
Germany is to release the Gfk report on consumer climate, a leading
indicator of consumer spending.
The BoE is to release its financial stability report, while the
U.K. is to release private sector data on retail sales.
Later Wednesday, the U.S. is to release revised data on first
quarter economic growth as well as government data on crude oil
Thursday, June 27
New Zealand is to release official data on the trade balance, the
difference in value between imports and exports, as well as data on
In the euro zone, European Union leaders are to hold the first day
of a two day economic summit. Germany is to release official data
on the change in the number of people unemployed, a leading
The U.K. is to publish official data on the current account and
revised data on first quarter economic growth.
Later Thursday, the U.S. is to release the weekly government report
on initial jobless claims along with data on personal income and
expenditure, which is to be followed by private sector data on
pending home sales.
Friday, June 28
Japan is to release a series of economic data, including reports on
household spending, inflation, retail sales and preliminary data on
Australia is to publish government data on private sector credit.
In the euro zone, EU leaders are to hold the second day of a two
day economic summit in Brussels.
Germany is to release preliminary data on consumer price inflation,
which accounts for a majority of overall inflation, while France is
to produce data on consumer spending.
Switzerland is to publish its KOF economic barometer, an important
indicator of economic health.
Later in the day, Canada is to publish its monthly report on gross
domestic product, the broadest indicator of economic activity and
the leading measure of the economy's health.
The U.S. is to round up the week with a report on manufacturing
activity in Chicago and revised data from the University of
Michigan on consumer sentiment.
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