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

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Investing.com -

Investing.com - The broadly weaker euro slid lower against the dollar on Friday, re-approaching four-month lows as concerns over the escalating conflict in Iraq bolstered safe haven demand for the dollar.

EUR/USD was down 0.08% to 1.3541 at the close, not far from the four-month trough of 1.3502 reached on June 5. For the week, the pair lost 0.38%.

The pair is likely to find support at the 1.3500 level and resistance at 1.3601, the high of June 10.

The single currency has weakened broadly since the European Central Bank cut rates to record lows earlier this month, in order to combat the threat of persistently low inflation in the euro area.

Concerns over the ongoing Sunni insurgency in Iraq hit market sentiment on Friday, amid fears over the impact of reduced oil supply from one of the world's largest producers on global economic growth.

The dollar was little changed after a report showed that U.S. consumer sentiment unexpectedly deteriorated in June.

The preliminary reading of the University of Michigan's consumer sentiment index for June came in at 81.2, down from 81.9 in May, missing expectations for an uptick to 83.0.

Elsewhere Friday, the euro slumped to one-and-a-half year lows against the stronger pound, with EUR/GBP down 0.30% to 0.7981 late Friday, extending the week's losses to 1.32%.

Sterling strengthened broadly after Bank of England Governor Mark Carney said on Thursday that U.K. interest rates could rise sooner than investors expect.

The euro edged higher against the yen, with EUR/JPY rising 0.26% to 138.18, not far from the four month low of 137.71 struck in the previous session. For the week, the pair lost 0.81%.

In the week ahead, investors will be focusing on the outcome of Wednesday's Federal Reserve policy meeting, while Monday's preliminary report on euro zone inflation 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, June 16

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

The U.S. is to produce data on industrial production and manufacturing activity in the Empire State.

Tuesday, June 17

The ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health.

Later Tuesday, the U.S. is to produce data on housing starts, building permits and consumer prices.

Wednesday, June 18

The Federal Reserve is to announce its federal funds rate and publish its rate statement. The announcement is to be followed by a press conference with Fed Chair Janet Yellen.

Thursday, June 19

The Eurogroup of euro area finance ministers are to hold meeting in Brussels.

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

Friday, June 20

Germany is to publish data on producer price inflation.

The euro zone is to release data on the current account, while the euro area's Economic and Financial Affairs Council is to hold meetings in Brussels.

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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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