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Forex - EUR/USD weekly outlook: February 16 - 20

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Shutterstock photo - - The euro was little changed against the dollar on Friday, as concerns over the Greek debt crisis continued to weigh, but stronger-than-expected German growth figures lent support.

EUR/USD dipped 0.10% to 1.1391 in late trade, but the pair ended the week up 0.73%, its third consecutively weekly gain.

The euro found support after data on Friday showed that Germany's economy, the euro zones largest, grew 0.7% in the fourth quarter, more than double the 0.3% forecast by economists.

The euro zone economy expanded by a larger-than-expected 0.3% in the three months to December, but Greece's economy contracted 0.2% in the same period.

Meanwhile, officials from Greece and the European Union were due to hold fresh talks on Monday after talks on a new debt deal last week ended without an agreement.

Greece's current €240 billion bailout is due to expire on February 28 and the new Greek government does not want it extended, fuelling fears over a conflict with its creditors which could trigger the country's exit from the euro zone.

Sentiment on the dollar was hit after data showing U.S. consumer sentiment unexpectedly deteriorated in February.

The preliminary reading of the University of Michigan's consumer sentiment index fell to 93.6, down from January's final reading of 98.1. Economists had forecast an unchanged figure.

The report came a day after data showing that U.S. retail sales unexpectedly fell 0.8% last month after dropping 0.9% in December, indicating that consumer spending remained sluggish at the start of the year.

The weak data prompted investors to reassess expectations for a mid-year rate hike by the Federal Reserve and to trim back long positions in the greenback ahead of a three-day holiday weekend.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was little changed at 94.24 late Friday and ended the week down 0.5%.

In the coming week, investors will be focusing on Wednesday's minutes of the latest Federal Reserve meeting for further indications on when the Fed may start to hike interest rates. Friday's data on euro zone private sector activity will also be closely watched.

Ahead of the coming week, has compiled a list of these and other significant events likely to affect the markets.

Monday, February 16

Markets in the U.S. are to remain closed for the Presidents Day holiday.

Tuesday, February 17

In the euro zone, the ZEW Institute is to report on German economic sentiment.

The U.S. is to release data on manufacturing activity in New York State as well as a private sector survey of home builders.

Wednesday, February 18

The U.S. is to release a string of economic reports, including data on producer prices, housing starts, building permits and industrial production. Later in the day, the Federal Reserve is to publish the minutes of its January meeting.

Thursday, February 19

The European Central Bank is to publish the minutes of its January meeting.

The U.S. is to publish a report on manufacturing activity in the Philadelphia region and the weekly government figures on initial jobless claims.

Friday, February 20

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 round up the week with preliminary data on manufacturing activity. offers an extensive set of professional tools for the financial markets.

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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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