Investing.com - The dollar was higher against the other major
currencies on Friday, recovering from a sell-off earlier in the
week after comments by Federal Reserve Chairman Ben Bernanke saw
traders reassess expectations on the timing of a possible reduction
to the bank's easing program.
The euro was lower against the dollar, with EUR/USD sliding 0.21%
to settle at 1.3068, trimming the week's gains to 1.62%.
The euro came under pressure after ratings agency Fitch downgraded
France from its triple-A rating on Friday, citing growing
government debt levels and the weak outlook for economic growth.
The dollar was also higher against the pound and the yen, with
GBP/USD down 0.51% to 1.5107 at the close and USD/JPY climbing
0.28% to 99.25. The pound ended the week 1.16% higher, while the
yen was up 1.68% for the week.
The dollar fell sharply on Wednesday after Bernanke said the Fed
will continue to maintain accommodative monetary policy for the
foreseeable future, citing low levels of inflation and the high
Bernanke said the bank will not raise interest rates until the U.S.
unemployment rate hits 6.5%.
The comments came after the minutes of the central bank's June
policy meeting showed that Fed policymakers remain divided over
when to begin tapering its USD85 billion-a-month asset purchase
Around half of Fed policymakers believe the bank should start to
scale back bond purchases by the end of the year, while many others
believe the labor market still remains too weak.
Data on Friday showed that U.S. consumer sentiment ticked lower in
July, with the University of Michigan's consumer sentiment index
slipping to 83.9 from 84.1 in June, compared to expectations for a
reading of 85.0.
Elsewhere, the Australian dollar fell to three-year lows against
the greenback on Friday amid concerns over a slowdown in growth in
AUD/USD hit session lows of 0.8999, the lowest since September
2010, before settling at 0.9050, down 1.52% for the day and ending
the week 0.77% lower.
In the week ahead, investors will be looking ahead to U.S. data on
retail sales, consumer inflation and housing sector activity.
Monday's data on Chinese economic growth will be closely watched
and a monetary policy decision by the Bank of Canada on Wednesday
will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
Monday, July 15
Markets in Japan are to remain closed for a national holiday.
Australia is to publish government data on new vehicle sales, a
leading indicator of consumer confidence.
China is to release official data on second quarter gross domestic
product, the broadest indicator of economic activity and the
leading measure of the economy's health. Beijing is also to produce
data on industrial production and fixed asset investment.
Switzerland is to publish government data on producer price
Later Monday, the U.S. is to produce official 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
the Empire state manufacturing index and a report on business
Tuesday, July 16
New Zealand is to release official data on consumer price
inflation, which accounts for the majority of overall inflation.
The Reserve Bank of Australia is to release the minutes of its
latest policy meeting, which contain valuable insights into
economic conditions from the bank's perspective.
The U.K. is to release official data on consumer price inflation,
as well as reports on producer price inflation and retail price
The ZEW Institute is to release its closely watched report on
German economic sentiment, a leading indicator of economic health,
as well as data on economic sentiment in the wider euro zone.
The euro zone is to release official data on consumer price
Canada is to publish official data on manufacturing sales, a
leading economic indicator.
The U.S. is to release official data on consumer price inflation,
industrial production and the capacity utilization rate.
Wednesday, July 17
The Bank of Japan is to release the minutes of its latest policy
meeting, which contain valuable insights into economic conditions
from the bank's perspective.
The U.K. is to release official data on the change in the number of
people unemployed and the unemployment rate, as well as data on
The ZEW Institute is to publish a report on economic expectations
in Switzerland, a leading indicator of economic health.
The BoC is to announce its benchmark interest rate and publish its
rate statement, which outlines economic conditions and the factors
affecting the monetary policy decision. The bank is to hold a press
conference after the rate announcement.
Canada is to release government data on foreign securities
The U.S. is to release official data on building permits, a leading
indicator of future construction sector activity, as well as data
on housing starts. The Federal Reserve is to release its Beige
Thursday, July 18
Australia is to publish an index of leading economic indicators and
a private sector report on business confidence.
The U.K. is to publish government data on retail sales.
In the euro zone, Spain and France are to hold auctions of 10-year
Canada is to produce official data on wholesale sales, a leading
indicator of consumer spending.
The U.S. is to release the weekly government report on initial
jobless claims and the Philly Fed manufacturing index.
Friday, July 19
In the euro zone, Germany is to release official data on producer
The U.K. is to release government data on public sector net
Canada is to round up the week with official data on consumer price
offers an extensive set of professional tools for the Forex,
Commodities, Futures and the Stock Market including real-time data
streaming, a comprehensive economic calendar, as well as financial
news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @