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Forex - EUR/USD weekly outlook: April 13 - 17

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Investing.com -

Investing.com - The euro was down against the dollar for the fifth straight session on Friday, falling to one-month lows as the contrasting monetary policy stance of the European Central Bank with the Federal Reserve acted as a drag.

EUR/USD was at 1.0603 in late trade, down 0.51%. For the week the pair lost 3.57%, the worst weekly performance since September 2011.

The single currency has already weakened broadly this year after the ECB unveiled a trillion-euro quantitative easing program in January. The bank started asset purchases last month, pushing euro area bond yields to new lows.

Demand for the dollar was underpinned by expectations for higher interest rates, as investors regained confidence that the U.S. economy would continue to recover after recent economic reports pointed to a slowdown at the start of the year.

The greenback received a boost earlier in the week after comments by the presidents of the New York and Richmond Federal Reserve banks made the case for the Fed to begin policy tightening as early as the summer.

Some investors had pushed back the timing of a rate hike until late 2015 after a surprisingly weak U.S. employment report for March.

The euro was also weaker against the yen, with EUR/JPY down 0.81% to 127.48 at the close, the weakest since March 16.

In the week ahead, Wednesday's monetary policy announcement and press conference by the ECB will be in focus. U.S. data on retail sales, inflation and consumer sentiment will be closely watched for further indications on the strength of the recovery.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday as there are no relevant events.

Tuesday, April 14

The U.S. is to release data on retail sales and producer prices.

Wednesday, April 15

The ECB is to announce its interest rate decision. The rate announcement is to be followed by a press conference with President Mario Draghi.

The U.S. is to release reports on industrial production and manufacturing activity in New York state.

Thursday, April 16

The U.S. is to release a string of reports, including jobless claims, building permits, housing starts and manufacturing activity in the Philadelphia region.

Friday, April 17

The euro zone is to produce revised data on the consumer price index.

The U.S. is to round up the week with data on consumer prices and consumer sentiment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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