Investing.com - The euro ended the week higher against the dollar on Friday, as lackluster U.S. data added to doubts over whether the Federal Reserve will start to phase out stimulus at its upcoming policy meeting.
rose as high as 1.3321, before trimming gains to settle at 1.3296, 0.01% lower for the day and 0.31% higher for the week.
The pair is likely to find support at 1.3245 and resistance at 1.3323, the high of September 11.
The dollar weakened after lukewarm data on U.S. retail sales and consumer sentiment raised further doubts over whether the Federal Reserve will start to roll back its USD85 billion-a-month asset purchase program at its policy meeting on September 17-18.
The Commerce Department said U.S. retail sales rose 0.2% in in August, undershooting expectations for a 0.4% increase. The data added to concerns over the outlook for third quarter growth.
A separate report showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to a five month low of 76.8, from a final reading of 82.1 in August.
The reports came a week after the latest U.S. employment report showed that the economy added slightly fewer jobs than expected in August.
Elsewhere, the euro ended the week little changed against the yen, with down 0.20% to settle at 132.11 on Friday, just 0.07% lower for the week.
In Japan, the government upgraded its view of the economy in its monthly economic report on Friday. In its September report, the government said Japan is approaching an end to deflation and said the economy was beginning to recover at a “moderate” pace.
In the week ahead, investors will be keenly anticipating the outcome of the Fed’s policy-setting meeting on Wednesday, and a press conference with Fed chief Ben Bernanke will be closely watched.
The ZEW index of German economic sentiment 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. The guide skips Friday as there are no relevant events on this day.Monday, September 16
The euro zone is to release data on consumer inflation, which accounts for a majority of overall inflation.
The U.S. is to publish the Empire state manufacturing index, in addition to data on industrial production and the capacity utilization rate.Tuesday, September 17
The ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health, as well as data on economic sentiment in the wider euro zone.
The U.S. is to release data on consumer price inflation.Wednesday, September 18
The U.S. is to release official data on building permits, a leading indicator of future construction sector activity, as well as data on housing starts.
The Fed is to announce its federal funds rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. Chairman Ben Bernanke is to hold a press conference after the rate announcement. Thursday, September 19
The U.S. is to release the weekly report on initial jobless claims, as well as the Philly Fed manufacturing index and data on existing home sales.