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Forex - EUR/USD weekly outlook: January 7 - 11
ForexJan 06, 2013 10:49AM ET
Investing.com - The euro pushed higher against the U.S. dollar on Friday, paring back some of the week’s losses after data on U.S. nonfarm payrolls for December indicated that the recovery in the labor market may be moderating.
hit 1.2996 on Friday, the pair’s lowest since December 12; the pair subsequently consolidated at 1.3067 by close of trade; still down 1.09% for the week.
The pair is likely to find support at 1.2928, the low of December 11 and resistance at 1.3189, Thursday’s high.
The euro found support after the U.S. Department of Labor said the economy added 155,000 jobs in December, slightly higher than forecasts for an increase of 150,000, but easing from an upwardly revised increase of 161,000 in November. The unemployment rate held steady at 7.8%.
The greenback rose sharply against the euro on Thursday after the minutes of the Federal Reserve’s December meeting showed that some policymakers want an earlier-than-expected end to the bank’s quantitative easing program.
The Fed’s December minutes said also interest rates would remain close to zero “at least as long” as the jobless rate remains above 6.5%.
Safe haven demand for the greenback continued to remain supported as relief over an agreement to avoid the U.S. fiscal cliff was offset by concerns about continuing political wrangling over further spending cuts and raising the U.S. debt ceiling.
In the week ahead, investors are likely to remain focused on U.S. fiscal negotiations, while monetary policy decisions by the European Central Bank and the Bank of England will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, January 7
The euro zone is to produce official data on producer price inflation, as well as a report on investor confidence.
Tuesday, January 8
The euro zone is to produce official data on retail sales, the leading indicator of consumer spending, which comprises the majority of economic activity. The bloc is also to release data on the unemployment rate, while Germany is to release government data on factory orders.
The U.S. is to release private sector data on economic optimism, as well as official data on consumer credit, which is closely linked to consumer spending.
Wednesday, January 9
In the euro zone, Germany is to publish government data on industrial production, a leading indicator of economic health.
The U.S. is to publish official data on crude oil inventories, while the U.S. Treasury is to hold an auction of 10-year government bonds.
Thursday, January 10
The ECB is to announce its benchmark interest rate, while President Mario Draghi is to hold a post-policy meeting press conference to discuss the monetary policy decision.
The U.S. is to publish the weekly government report on initial jobless claims.
Friday, January 11
The U.S. is to round up the week with the government’s report on the trade balance, the difference in value between imports and exports.
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