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Markets

Forex - Weekly outlook: August 11 - 15

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Investing.com -

Investing.com - The dollar slid lower against the other major currencies on Friday as heightened geopolitical risks prompted investors to take profits following the greenback's recent run higher.

The drop in the dollar came after the U.S. launched airstrikes in Iraq, in a bit to halt the advance of extremists in the country's north, while a breakdown in the ceasefire between Israel and Gaza also soured market sentiment.

Meanwhile, fears over hostilities between Russia and Ukraine eased on Friday after Russia's defense ministry said it had concluded military exercises it was holding close to the border with Ukraine.

EUR/USD was up 0.35% to 1.3410 late Friday, trimming the week's losses to 0.13%.

On Thursday, European Central Bank President Mario Draghi indicated that the bank was pleased with the weaker exchange rate for the euro, which should help to bolster inflation and shore up exports.

USD/JPY ended Friday's session down 0.06% at 102.03, after falling to a more-than two week low of 101.50 earlier in the session.

The greenback was also weaker against the Swiss franc, with USD/CHF sliding 0.38% to 0.9053 at the close.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17% to 81.46, off Thursday's 11-month highs of 81.78.

Elsewhere Friday, the Canadian dollar weakened against its U.S. counterpart after official data showed that the country's economy added fewer than expected jobs in July.

Statistics Canada reported that the economy added just 200 jobs last month, falling well short of expectations for jobs growth of 20,000. The unemployment rate ticked down to 7.0% from 7.1% in June.

USD/CAD was up 0.45% to 1.0973 late Friday, from 1.0908 ahead of the release of the jobs report.

In the week ahead, investors will be continuing to monitor geopolitical risk, while preliminary data on second quarter growth from the euro zone and Japan will be closely watched. Markets watchers will also be looking ahead to Wednesday's inflation report from the Bank of England and the U.S. report on retail sales.

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

Monday, August 11

Japan is to release data on tertiary industry activity.

Switzerland is to publish data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.

Later in the day, Canada is to release data on housing starts.

Tuesday, August 12

Australia is to release reports on business confidence and house prices.

The U.K. is to release private sector data on retail sales.

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

Wednesday, August 13

The Bank of Japan is to publish the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank's perspective.

Japan is to publish preliminary data on gross domestic product, the broadest indicator of economic activity and the leading measure of the economy's health.

Australia is to publish data on consumer sentiment and the wage price index.

China is to release a report on industrial production.

The U.K. is to publish data on the change in the number of people employed and the unemployment rate, as well as data on average earnings. Later in the day, the BoE is to publish its quarterly inflation report and Governor Mark Carney is to speak.

The ZEW Institute is to publish a report on economic expectations in Switzerland, a leading indicator of economic health.

The euro zone is to release data on industrial production.

The U.S. is to publish data on retail sales and business inventories.

Thursday, August 14

New Zealand is to release data on retail sales as well as a private sector report on manufacturing activity.

Japan is to publish data on machinery orders.

The euro zone is to publish preliminary data on gross domestic product, in addition to revised data on consumer price inflation.

Elsewhere in Europe, Switzerland is to release data on producer price inflation.

Canada is to produce data on new house price inflation.

The U.S. is to release the weekly report on initial jobless claims.

Friday, August 15

The U.K. is to release revised data on GDP growth.

Canada is to publish data on manufacturing sales.

The U.S. is to round up the week with reports on manufacturing activity in New York state and industrial output, as well as preliminary data on 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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