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Forex - EUR/USD weekly outlook: August 18 - 22

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Investing.com -

Investing.com - The euro pushed higher against the dollar on Friday as weak data on euro zone second quarter growth fuelled expectations for fresh stimulus by the European Central Bank.

EUR/USD was up 0.27% to 1.3400 late Friday and ended the week little changed.

The pair is likely to find support at 1.3347, Thursday's low and an almost nine month trough and resistance at the 1.3450 level.

Preliminary data on Thursday showed that euro zone gross domestic product failed to grow in the three months to June. Economists had expected a small expansion of 0.1%.

Germany's economy shrank by 0.2% in the three month to June, the first drop since 2012 and worse than forecasts for a contraction of 0.1%.

French GDP was flat in the second quarter, the second consecutive quarter of stagnation.

The weak data indicated that the economic recovery in the euro area is losing momentum, adding to pressure on the ECB to do more to bolster growth after it cut rates to record lows in June.

The euro's gains were held in check as heightened geopolitical tensions weighed on market sentiment on Friday.

Tensions over the crisis in Ukraine escalated following reports that Ukraine's military attacked and destroyed a number of armored vehicles that entered the country from Russia.

Elsewhere, the euro drifted higher against the yen, with EUR/JPY rising 0.18% to 137.16 late Friday.

In the week ahead, investors will be looking ahead to Wednesday's minutes of the Federal Reserve's latest meeting, while Thursday's data on euro zone private sector activity will also be in focus. Speeches by central bank heads Janet Yellen and Mario Draghi on Friday 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, August 18

Germany's Bundesbank is to publish its monthly report.

The U.S. is to produce private sector data on the housing market.

Tuesday, August 19

The U.S. is to release reports on building permits, housing starts and consumer inflation.

Wednesday, August 20

The Federal Reserve is to publish the minutes of its latest policy meeting.

Thursday, August 21

The euro zone is to publish preliminary data on private sector activity, while Germany and France are to also to publish data on private sector growth.

The U.S. is to produce data on unemployment claims, manufacturing activity and existing home sales.

The first day of the annual economic symposium is due to take place in Jackson Hole, Wyoming.

Friday, August 22

Fed Chair Janet Yellen and ECB President Mario Draghi are both to speak at the second day of the annual economic symposium in Jackson Hole, Wyoming.

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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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