The dollar rose broadly against other major currencies on Friday, with an upbeat outlook after the release of U.S. data, fueling speculation exit monetary easing from the Federal Reserve soon, while weak data reinforced the United Kingdom demand on the gold as a safe heaven.
The data showed on Friday that the U.S. manufacturing sector expanded at its fastest pace since June 2011 last month, while a separate report showed that U.S. consumer confidence rose in February.
The Institute for Supply Management said its index of purchasing managers “rose to 54.2 from 53.1 in January, whereas the final reading of the consumer confidence index from the University of Michigan, 77.6, from an initial reading of 76.3.
In contrast, the revised data showed that manufacturing activity in the euro zone shrank in February at the same pace as in January with the survival of manufacturing PMI was unchanged at 47.8.
Data added speculation about the possibility of a possible downgrade of the European Central Bank at its next policy on Thursday.
The single currency remained under pressure amid fears that Italy will not be able to continue to implement structural reforms and austerity measures in the wake of the inconclusive election results.
The euro fell against the dollar mechanism 1.30 against the dollar for the first time since December 11, and had declined the euro / dollar to reach session low of 1.2967, 1.3018 before settling down by 0.29% for the day and 0.38% for the week.
At the same time, the decline of the pound against the dollar at 1.50 for the first time since July 2010 with weak manufacturing data unexpectedly in the United Kingdom as well as expectations that the Bank of England will Stanf quantitative easing program.
Employment levels fell as is the case in the manufacturing sector in the United Kingdom, where purchasing managers’ index fell to 47.9 from 50.5 in January, much lower than the level of 50 that separates growth and contraction, the fastest pace in more than three years.
GBP / USD hit session low of 1.4986 before settling at 1.5035, shedding 0.85% for the day and 0.86% for the week.
The dollar rose against the yen by more than 1% on Friday, the biggest rise for a single day in more than three weeks amid mounting speculation that the Bank of Japan will enhance the action monetary easing after it announced Minister Shinzo candidacy new governor of the Bank of supporters policy monetary easing strong.
The dollar / yen higher price during the session 93.69, the highest price since February 25, before settling at 93.54, up by 1.06%, during the day and 1.26% over the week.
The dollar also found support amid concerns about spending cuts the United States, known as the disqualification process, after lawmakers failed to reach an agreement on a deficit reduction plan.
Elsewhere, pulled the Canadian dollar once again from the lowest levels in several months against the dollar on Friday after data showed the Canadian economy declined by 0.2% in December, in line with expectations, pointing to Allen data was less than market expectations.
On an annual basis the Canadian economy grew by 0.6% in the fourth quarter, identical expectations.
USD / CAD up to hit 1.0342, the highest price for the pair since June 28, before falling back to settle at 1.0268, down 0.38%, to this day, up by only 0.09% during the week.
This week, investors will be looking at the market interest rate decisions by the European Central Bank and the Bank of England and the Reserve Bank of Australia, the Bank of Canada and the Bank of Japan.
In addition, data will be watching U.S. non-farm payrolls on Friday as investors awaited in an attempt to gauge the strength of the economic recovery.
Before next week, Forex Pros has compiled a list of these and other significant events of the events that are likely to affect the markets.
Monday, March 4
Australia will publish official data on building permits, a leading indicator of future construction activity, as well as data on the operating profit.
In the euro area, Spain will publish government data on the change in the number of unemployed.
The UK is to publish data on activity in the construction sector, a leading indicator of economic health.
Tuesday, March 5
Reserve Bank of Australia will announce the interest rate. Accompanied by a statement of bank rate, which contains important information about the current economic situation and future of the bank’s point of view.
Australia will publish official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. Elsewhere, Japan is to publish government data on average wages.
The euro zone is to publish final data on activity in the service sector, while Spain and Italy will publish individual reports. The euro zone will also release official data on retail sales.
The UK is to publish official data on service sector activity, a leading indicator of economic health, as well as industry data on retail sales.
In the United States, the Institute for Supply Management will publish a report on service sector activity, a leading indicator of economic health.
Wednesday, March 6
Australia will publish official data on growth in the economy in the fourth quarter of, the broadest indicator of economic activity and the key measure of the health of the economy.
The euro zone is to publish revised data on gross domestic product (GDP) fourth quarter.
The Board of Commissioners will announce the interest rate. Accompanied by a detailed statement on the bank rate, which contains important information about the current economic situation and future of the bank’s point of view. Canada will also publish data on Effi confidence index BMI, a leading indicator of economic development.
The United States will will publish non-farm payrolls data Bede, and data on non-farm payrolls for two days. The United States will also also to publish official data on factory orders and crude oil inventories.
Thursday, March 7
Australia will publish official data on the trade balance, the difference between the value of imports and exports.
The Bank of Japan will announce interest rate. Accompanied by bank rate statement, which contains important information about the current economic situation and future of the bank’s point of view. The central bank also held a press conference to discuss the decision after the announcement of monetary policy interest rate.
The Swiss National Bank will publish data on foreign exchange reserves, which gives valuable information about the size of the Bank’s operations in the currency market.
The Bank of England will announce interest rate.
Also Thursday, the European Central Bank will announce interest rate, followed by a news conference with Central Bank President Mario Draghi.
Germany will publish official data on factory orders, a leading indicator of economic health.
Canada will publish official data on building permits, a leading indicator of future construction activity. And will also publish official data on the trade balance.
The United States will publish a weekly government report on initial jobless claims and the official data on the trade balance.
Friday, March 8
Japan is to publish official data on the current account and revised data on fourth quarter economic growth.
Switzerland will is to produce government data on consumer price inflation, which accounts for a majority of overall inflation.
Elsewhere in Europe, Germany will publish official data on industrial production, a leading indicator of economic health.
Canada will publish government data on the change in the number of workers and the unemployment rate, as well as data on labor productivity.
The United States will besiege week government data on non-farm payrolls and unemployment rate data on average hourly earnings.