Investing.com – The euro was almost unchanged against the dollar on Friday as concerns over a major Portuguese lender eased, curbing safe haven demand for the greenback.
EUR/USD was at 1.3606 late Friday, little changed for the day.
The pair was likely to find support at 1.3575 and resistance at 1.3650, Thursday’s high.
Worries over the fiscal stability of Portugal’s largest lender, Banco Espirito Santo, fuelled a sharp selloff in markets on Thursday, amid fears over the risk of contagion.
Concerns eased after Portugal’s central bank said Friday it was satisfied that the bank is able to fulfill its capital requirements.
The single currency remained under pressure as a slew of weak economic data on Thursday fuelled concerns over the outlook for the recovery in the region.
Italy’s industrial output unexpectedly fell 1.2% in May, official data showed. Meanwhile, French industrial production plunged 1.7% in May and inflation rose by just 0.6%, the lowest level since November 2009.
The dollar fell to one week lows against the euro earlier in the week after Wednesday’s minutes of the Federal Reserve’s latest meeting indicated that interest rates are unlikely to rise soon.
The minutes of the central bank’s June meeting showed that officials agreed to end the bank’s asset purchase program in October, but revealed little new information on when rates could start to increase.
Officials said policy depends most “on the evolution of the economic outlook.”
In the week ahead, investors will be watching testimony on monetary policy by Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, July 14
The euro zone is to release data on industrial production.
ECB President Mario Draghi is to testify on monetary policy to the Committee on Economic and Monetary Affairs of the European Parliament. His comments will be closely watched.
Tuesday, July 15
The ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health.
The U.S. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The U.S. is also to release data on import prices, business inventories and manufacturing activity in the Empire state.
Wednesday, July 16
The U.S. is to release reports on producer price inflation and industrial production. Meanwhile, Fed Chair Janet Yellen Carney is to testify on monetary policy to the House financial committee.
Thursday, July 17
The euro zone is to release data on consumer prices.
The U.S. to publish reports on initial jobless claims, housing starts, building permits, and the Philly Fed manufacturing index.
Friday, July 18
The U.S. is to round up the week with preliminary data from the University of Michigan on consumer sentiment.