Forex Weekly News Analisys EURUSD EURJPY 12.2-6.2013.
The EUR ended the week close to one-month high against the US $ on Friday after stronger than expected euro zone inflation data for the month allay concerns that the bloc slipping into deflation.
EUR/USD ended the session on Friday at 1.3591, slightly below the session high of 1.3622. For this week, the pair is up 0.42 %. The pair was likely to find support at 1.3556, Wednesday low and short-term resistance at 1.3645.
Eurostat said consumer annual inflation increased to 0.9 % in November, after slumping to a four year low of 0.7 % in October. Economists had forecast an annual increase of 0.8 %.
Slowing inflation in the euro area in October to encourage the European Central Bank to cut interest rates to a record low of 0.25 % at a meeting in November. Another report showed that euro zone unemployment rate fell to 12.1 % in October, down from 12.2 % in September, the first decline since February 2011. However, the level of youth unemployment in the region rose to a record high of 24.4 % in October.
The EUR rose to a nearly five year low against the JPY, with EUR/JPY ended the session Friday at 139.21, the highest level since June 2009. For this week, the pair gained 1.46 %.
The JPY remained under heavy selling pressure amid high expectations that the Bank of Japan will implement stimulus measures further to meet the inflation target of 2 % by 2015. On Wednesday, the BoJ board member Sayuri Shirai raises doubts about whether the inflation target can be met because the downside risks to growth, adding that the bank is open to take further measures if growth slows.
In the week ahead, investors will be focused on the U.S. nonfarm payrolls report for November Friday, on expectations that the Federal Reserve will begin to scale back the stimulus program on one of the next few meetings. Meanwhile, the results of Thursday's ECB policy meeting will also be a focus.
Monday, December 2
The euro zone is to release revised data on manufacturing PMI, while Spain and Italy are also released individual reports.
Federal Reserve Chairman Ben Bernanke to speak at an event in Washington. Later Monday, the Institute of Supply Management will release PMI manufacturing.
Tuesday, December 3
In the euro zone, Spain is to publish data on the change in the number of people employed.
Wednesday, December 4
The euro zone will release retail sales data, while Spain and Italy to publicize their services PMI.
The U.S. is to publish a revised estimate of third -quarter gross domestic product, the broadest indicator of economic activity and the primary indicator of economic growth. Meanwhile, the Labor Department will release its weekly report on initial jobless claims. U.S. factory orders also published data.
Thursday, December 5
The ECB is to announce its benchmark interest rate. The announcement will be followed by a press conference with President Mario Draghi.
The U.S. is to publish a revised estimate of third -quarter gross domestic product, the broadest indicator of economic activity and the primary indicator of economic growth. Meanwhile, the Labor Department will release its weekly report on initial jobless claims. U.S. factory orders also published data.
Friday, December 6
Germany is to release data on factory orders.
The University of Michigan is to release preliminary reading of consumer sentiment. The U.S. is to collect the week with a closely watched government data on nonfarm payrolls and the unemployment rate.
EUR/USD ended the session on Friday at 1.3591, slightly below the session high of 1.3622. For this week, the pair is up 0.42 %. The pair was likely to find support at 1.3556, Wednesday low and short-term resistance at 1.3645.
Eurostat said consumer annual inflation increased to 0.9 % in November, after slumping to a four year low of 0.7 % in October. Economists had forecast an annual increase of 0.8 %.
Slowing inflation in the euro area in October to encourage the European Central Bank to cut interest rates to a record low of 0.25 % at a meeting in November. Another report showed that euro zone unemployment rate fell to 12.1 % in October, down from 12.2 % in September, the first decline since February 2011. However, the level of youth unemployment in the region rose to a record high of 24.4 % in October.
The EUR rose to a nearly five year low against the JPY, with EUR/JPY ended the session Friday at 139.21, the highest level since June 2009. For this week, the pair gained 1.46 %.
The JPY remained under heavy selling pressure amid high expectations that the Bank of Japan will implement stimulus measures further to meet the inflation target of 2 % by 2015. On Wednesday, the BoJ board member Sayuri Shirai raises doubts about whether the inflation target can be met because the downside risks to growth, adding that the bank is open to take further measures if growth slows.
In the week ahead, investors will be focused on the U.S. nonfarm payrolls report for November Friday, on expectations that the Federal Reserve will begin to scale back the stimulus program on one of the next few meetings. Meanwhile, the results of Thursday's ECB policy meeting will also be a focus.
Monday, December 2
The euro zone is to release revised data on manufacturing PMI, while Spain and Italy are also released individual reports.
Federal Reserve Chairman Ben Bernanke to speak at an event in Washington. Later Monday, the Institute of Supply Management will release PMI manufacturing.
Tuesday, December 3
In the euro zone, Spain is to publish data on the change in the number of people employed.
Wednesday, December 4
The euro zone will release retail sales data, while Spain and Italy to publicize their services PMI.
The U.S. is to publish a revised estimate of third -quarter gross domestic product, the broadest indicator of economic activity and the primary indicator of economic growth. Meanwhile, the Labor Department will release its weekly report on initial jobless claims. U.S. factory orders also published data.
Thursday, December 5
The ECB is to announce its benchmark interest rate. The announcement will be followed by a press conference with President Mario Draghi.
The U.S. is to publish a revised estimate of third -quarter gross domestic product, the broadest indicator of economic activity and the primary indicator of economic growth. Meanwhile, the Labor Department will release its weekly report on initial jobless claims. U.S. factory orders also published data.
Friday, December 6
Germany is to release data on factory orders.
The University of Michigan is to release preliminary reading of consumer sentiment. The U.S. is to collect the week with a closely watched government data on nonfarm payrolls and the unemployment rate.
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