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Forex - EUR/USD weekly outlook: June 10 - 14

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Shutterstock photo - The dollar pulled away from three month lows against the euro on Friday after official data showed that the U.S. economy added slightly more jobs than expected in May, easing concerns over the economic recovery.

EUR/USD hit session lows of 1.3193 before trimming losses to settle at 1.3222, down 0.17% for the day, but ending the week 1.14% higher.

The pair is likely to find support at 1.3150 and resistance at 1.3305, Thursday's high and the pair's highest since February 25.

The Department of Labor said the U.S. economy added 175,000 jobs last month, slightly more than the 170,000 gain forecast by economists. The unemployment rate ticked up to 7.6% from 7.5% in April.

In the euro zone, official data showed that German industrial production rose 1.8% in May, the largest increase in almost a year.

The dollar fell sharply against the euro on Thursday, dropping 1.15% after weaker-than-expected U.S. private sector jobs data lowered expectations for a strong economic recovery.

Payroll processor ADP said non-farm private employment rose by a seasonally adjusted 135,000 last month, below expectations for an increase of 165,000.

The euro rallied on Thursday after the European Central Bank left its benchmark interest rate on hold at a record low 0.5% and left deposit rates at zero.

ECB President Mario Draghi said the euro zone economy is now likely to contract by 0.6% this year, from the 0.5% contraction forecast in March. However, the central bank revised up its growth forecast for 2014 to 1.1% from 1.0%.

Draghi said policymakers discussed negative deposit rates and said the bank was technically ready to cut rates below zero, but added that there was no reason to act yet.

In the week ahead, investors will be focusing on U.S. data on retail sales and consumer sentiment for indications of the strength of the economic recovery. Euro zone data on consumer prices 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. The guide skips Tuesday as there are no relevant events on this day.

Monday, June 10

In the euro zone, France is to release official data on industrial production.

Wednesday, June 12

The euro zone is to produce official data on industrial production, a leading indicator of economic strength.

Thursday, June 13

The ECB is to publish its monthly bulletin, which outlines the banks economic outlook. Elsewhere in the euro zone, Italy is to hold an auction of 10-year government bonds.

The U.S. is to release official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as the weekly government report on initial jobless claims.

Friday, June 14

The euro zone is to release official data on consumer price inflation, which accounts for the majority of overall inflation.

The U.S. is to round up the week with data on producer price inflation, industrial production, the capacity utilization rate, the current account and preliminary data from the University of Michigan on consumer sentiment. - 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.

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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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