[放炮] EUR/USD, week June4-June8 zt

aimei

The euro rose against the U.S. dollar on Friday, pulling off a 22-month low as downbeat U.S. economic data sparked new expectations for easing measures by the Federal Reserve.

EUR/USD hit 1.2287 on Friday, the pair’s lowest since July 1, 2010; the pair subsequently consolidated at 1.2433 by close of trade on Friday, tumbling 1.11% over the week.

The pair is likely to find support at 1.2287 and resistance at 1.2504, the high of May 30.

The Department of Labor said that the U.S. economy added just 69,000 jobs in May, far below expectations for a gain of 150,000, while the unemployment rate ticked up to 8.2% from 8.1%.

The weak data added to concerns that the economic recovery in the U.S. is losing momentum and fuelled speculation over the possibility of a third round of quantitative easing from the Federal Reserve.

A separate report showed that manufacturing activity in the U.S. slowed in May. The Institute for Supply Management's manufacturing index fell to 53.5 from 54.8 in April, against expectations for a decline to 53.9.

The euro came under broad selling pressure after data on Friday showed that unemployment in the euro zone rose to a record high of 11% in April, adding to concerns over the handling of the region’s debt crisis.

The data came after the yield on Spanish 10-year bonds climbed to a euro-era high of 6.7% on Wednesday, as the lack of a convincing plan to recapitalize stricken lender Bankia fuelled fears that Madrid will be forced to seek an international bailout.

On Saturday, Spain’s government urged the euro zone to set up a new fiscal authority to manage the bloc's finances and send a clear signal to markets that the single currency project is irreversible.

Elsewhere, official results showed that 60.3% of Irish voters favored the ratification of the European Union fiscal stability pact, while 39.7% voted against it in a referendum on Thursday.

In the week ahead, investors will be the European Central Bank’s interest rate decision.

Market participants will also be watching Thursday’s testimony on the economic outlook by Fed Chairman Ben Bernanke for any indications that the central bank is considering more monetary easing.

Ahead of the coming week, Forexpros has compiled a list of these and other significant events likely to affect the markets.

Monday, June 4

The euro zone is to publish a report on investor confidence, an important indicator of economic health.

Later in the day, the U.S. is to produce official data on factory orders, a leading indicator of production.

Tuesday, June 5

The euro zone is to produce official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of consumer spending, while Germany is to publish official data on factory orders. In addition, Spain is to hold an auction of government bonds.

In the U.S., the Institute for Supply Management is to release a report on non-manufacturing activity, a key indicator of economic health.

Wednesday, June 6

In the euro zone, the ECB is to announce its benchmark interest rate. The announcement is to be followed by a press conference with ECB head Mario Draghi to discuss the monetary policy decision and the economic outlook for the region. Meanwhile, Germany is to produce official data on industrial production, a leading indicator of economic health.

Later Wednesday, the U.S. is to release revised data on nonfarm productivity, followed by government data on crude oil stockpiles, while the Federal Reserve is to release its Beige Book.

Thursday, June 7

In the euro zone, France is to hold an auction of 10-year government bonds.

Also Thursday, the U.S. is to release government data on initial unemployment claims, while Fed Chairman Ben Bernanke is to appear before the Joint Economic Committee, in Washington.

Friday, June 8

The U.S. is to round up the week with government data on its trade balance.

not4weak

another turmoil week for sure.