Future look on the markets from 25 of February to 1 of March – Euro recorded its lowest level in six weeks against the US dollar on Friday, after the group of eurozone banks reported that, they will do to pay less than half the amount projected in emergency loans from the European Central Bank, while uncertainty led by the Italian elections to pressure on morale.
The European Central Bank said it will pay EUR 6 billion of funds that are fully borrowed as part of the second long-term refinancing by one year, which is about half what the market had expected.
This statement led to the deployment of doubts about the health of the European banking sector and weakened investor confidence in the euro zone.
Investors still cautious also before the next general election results in Italy, amid concern that a hung parliament could hamper efforts to implement further economic reforms.
However the single currency found support after the Ifo index rose for the parts of the business climate is German from 107.4 jumped to 104.3 in January, beating expectations for a reading of 105.0.
EUR / USD hit 1.3147 on Friday, the pair’s lowest since January 10, before settling at 1.3188, shedding 0.01% for the day and 1.22% for the week.
The yen fell against the euro and the dollar on Friday as investors awaited news about the candidate who will replace Bank of Japan Governor outgoing Masaaki Shirakawa, who criticized his policies, Prime Minister Shinzo Abe on the fight against deflation.
USD / JPY hit its lowest price at 92.93 on Friday, before settling at 93.36, up by 0.26%, for the day, but fell by 0.26% for the week. EUR / JPY to session low of 122.55 on Friday before rebounding to 123.11 to close at 0.24%, up for the day, but fell by 1.5% during the week.
The dollar found support after the minutes of the Fed’s meeting on Wednesday of the policy that the bank may lower bond-buying program sooner than expected.
The minutes of the meeting showed the Fed for the month of January that policymakers discussed the delay or stop buying bonds from before until the labor market improves, amid fears that the policy could cause instability in the financial markets.
Elsewhere, Sterling ended the week near its lowest level in two and a half year against the dollar as concerns over the weak growth and high inflation rates, which lasted clicking on sentiment ..
GBP / USD hit 1.5129 on Thursday, the pair’s lowest since July 2010, before settling at 1.5174 at the end of the day Friday, shedding 0.50% for the day and down by 2.0% during the week.
Lowered the rating agency Moody’s in the UK – Classification of a trio – one notch to AA on Friday evening, citing weak outlook for growth and high debt burden.
This week, he would be Alastrlnie great pressures in sales after the cut on Friday, while investors awaited awaiting political developments in Italy.
The President of the Council of Federal Reserve Chairman Ben Bernanke Congress, while data will be monitored economic growth in the United States, the United Kingdom and Switzerland, as Switzerland and Canada will be under the attention and focus.
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, January 25
China will publish index BMW Manufacturing Purchasing Managers, a leading indicator of economic health.
In the euro zone, will vote on the general election in Italy for a second day.
The UK is to publish industry data on mortgage approvals, an important indicator of demand in the housing sector.
Later Monday, the governor of the Bank of Canada will Mark Carney talking, and we will closely monitor his remarks.
Tuesday, February 26
New Zealand is to publish official data on inflation expectations, as well as data on the trade balance, the difference between the value of imports and exports.
Switzerland is to publish official data on the level of employment, while the United Kingdom will publish industry data on retail sales, an important indicator of economic health.
The United States will publish a report on consumer confidence, as well as official data on new home sales, a leading indicator of economic health. The United States will also publish industry data on house price inflation. In addition, it will Federal Reserve Chairman Ben Bernanke is to speak at a meeting in front of the Banking Committee in the Senate, in Washington, DC ..
Wednesday, February 27
T of Japan will publish official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
Australia will publish official data on the value of completed construction projects, which is a very important measure of activity in this sector.
In the euro zone will publish official data on money supply or M3, as well as a report on German consumer climate GfK, a leading indicator of consumer spending. Italy will also hold an auction of government bonds with 10 years.
Switzerland is to publish economic barometer to or F, which is designed to predict the direction of the economy
The UK is to publish revised data on fourth-quarter economic growth, as well as preliminary data on business investment, a leading indicator of economic.
The United States will publish official data on durable goods orders, and pending home sales and crude oil inventories. At the same time, will Federal Reserve Chairman Ben Bernanke to speak about monetary policy before the Banking Committee in the Senate for a second day, in Washington, DC.
Thursday, February 28
Japan is to publish preliminary data on industrial production, a leading indicator of economic development.
New Zealand will publish a report on business confidence, while Australia will publish official data on private capital expenditure and loans to the private sector.
Switzerland is to publish government data on gross domestic product in the fourth quarter, the broadest indicator of economic activity and the leading measure the health of the economy.
The euro zone is to publish official data on consumer price inflation, which accounts for a majority of overall inflation. At the same time, Germany will publish CB Index on the rate of change in the number of unemployed in the previous month. France will publish government data on consumer spending.
Canada will publish official data on the current account and data on raw material prices, a leading indicator of inflation.
Later in the day, the U.S. is to publish revised data on fourth-quarter economic growth, in addition to a weekly government report on initial jobless claims and official data on manufacturing activity in the Chicago.
Friday, March 1
Japan is to publish official data on household spending and capital spending and inflation. At the same time, China is to publish data on manufacturing activity the government.
Atfum the euro zone is to publish preliminary data on consumer price inflation and the unemployment rate, while Germany will publish official data on retail sales.
Switzerland is to publish data on the index of my mother any SPA or any, a leading indicator of economic strength.
The UK is to publish data on inflation in industrialized house prices, as well as a report on manufacturing activity and net lending to individuals.
Canada will publish government data on economic growth, the broadest indicator of economic activity and a key measure of the health of the economy.
The United States will besiege week with a report from the Institute for Supply Management’s manufacturing activity, official data on personal spending and revised data on consumer sentiment from the University of Michigan.
Saicom Federal Reserve Chairman Ben Bernanke to speak in San Francisco, and we will closely monitor his remarks for clues about the possible direction of future policy.