Investing.com - The euro was little changed against the dollar on Friday as concerns over heightened tensions in eastern Ukraine and the possibility of fresh stimulus measures from the European Central Bank weighed.
EUR/USD ended Friday’s session at 1.3833 after touching session highs of 1.3848. For the week, the pair gained 0.30%.
The pair was likely to find support at 1.3790, Thursday’s low and resistance at 1.3863, the high of April 17.
Concerns over the conflict between Russian and Ukraine escalated on Friday after U.S. Secretary of State John Kerry warned that Washington was ready to step up economic sanctions against Russia.
Meanwhile, ratings agency Standard & Poor’s cut its rating on Russia on Friday, citing the potential for “additional significant outflows” of capital due to escalating hostilities with Ukraine.
The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month.
The euro’s gains were held in check after European Central Bank President Mario Draghi reiterated warnings on Thursday that further gains in the euro could trigger additional monetary easing. He also said the ECB could launch a "broad-based" asset purchase program if the medium-term inflation outlook deteriorated.
Earlier in the week, data showed that the recovery in the euro zone private sector continued this month, but pointed to a divergence between Germany and France.
The recovery in Germany, the euro zone’s largest economy accelerated, with activity in both the manufacturing and service sector strengthening, but growth in the French private sector lost momentum.
In the U.S., data on Friday showed that consumer confidence rose to a nine-month high in April, adding to indications that the economy is improving.
The University of Michigan reported that its consumer sentiment index came in at 84.1 this month, up from 80 in March and the preliminary reading of 82.6. Analysts had expected the index to rise to 83.0.
In the week ahead, investors will be focusing on Friday’s U.S. jobs report for April and the outcome of the Federal Reserve’s two-day policy meeting on Wednesday. Wednesday's preliminary April inflation report for the euro zone 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, April 28
The U.S. is to release private sector data on pending home sales.
Tuesday, April 29
In the euro zone, Germany is to release preliminary data on consumer price inflation and a report by market research group Gfk on consumer climate, while Spain is to release data on the unemployment rate.
The U.S. is to a report compiled by the Conference Board on consumer confidence.
Wednesday, April 30
In the euro zone, Germany is to publish reports on retail sales and unemployment change. Spain is to release preliminary data on first quarter growth. The wider euro zone is to release preliminary data on consumer price inflation.
The U.S. is to release preliminary data on first quarter GDP, as well as the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to release data on manufacturing activity in the Chicago region.
Later Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement.
Thursday, May 1
Markets in Germany, France and Italy will remain closed for the Labor Day holiday.
The U.S. is to publish the weekly report on initial jobless claims. At the same time, Fed Chair Janet Yellen is to speak at an event in Washington; her comments will be closely watched.
Later Thursday, the Institute of Supply Management is to release a report on manufacturing activity.
Friday, May 2
The euro zone is to produce data on the unemployment rate, while Spain and Italy are to release reports on manufacturing activity.
The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate, and a separate report on factory orders.