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Forex - Weekly outlook: May 24-28

Published 05/23/2010, 05:42 AM
Updated 05/23/2010, 05:42 AM

Investing.com – The week beginning May 24 follows one during which the euro hit a 4-year low against the U.S. dollar, after Germany banned naked short selling in some securities, then clawed back up to make its first weekly gain in six weeks.

The euro's rebound came as German lawmakers approved their country's contribution to a EUR 750 billion emergency aid package aimed at combating the debt crisis that has engulfed the euro zone in recent months.

Next week will see the publication of key reports on the euro zone industrial sector, German consumer sentiment, French consumer spending and German consumer price inflation.

Meanwhile, important U.S. data will be released on existing and new home sales, durable goods orders, gross domestic product and initial jobless claims. A slew of other reports will also be published on U.S. consumer confidence, manufacturing, crude oil inventories and personal spending. The Chairman of the Federal Reserve, Ben Bernanke, is also due to speak at a public engagement.

Elsewhere in the world, Britain will publish key GDP data, the Bank of Japan will release its monthly report and Switzerland will publish employment data. Canada, meanwhile, will publish a report on its current account; Australia will release data on capital expenditures and construction; and New Zealand will publish reports on its housing sector and trade balance.

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

Monday, May 24

Australia will begin the week by publishing a monthly report on the change in the number of new cars and trucks sold domestically, an indicator of consumer confidence.

The Bank of Japan will later release its monthly report, which contains the statistical data the central bank's policy board members evaluated while making their latest interest rate decision. Japan will also publish a report on the change in the total value of goods and services purchased by businesses.

Later in the day, an industry group will release key data on existing U.S. home sales, a leading indicator of economic health.

Markets in Germany, France and Switzerland will be closed, meanwhile, as the countries mark Whit Monday. Canada will also hold a bank holiday, in observance of Victoria Day.

Tuesday, May 25

Britain will publish quarterly GDP data, the broadest measure of economic activity. An industry group will also publish a report on British mortgage approvals.

Also Tuesday, the European Union will release monthly data on the change in the total value of new purchase orders placed with manufacturers in the euro zone, a key indicator of production.

A research group, meanwhile, will publish a closely watched report on U.S. consumer confidence. The data, which is based on a survey of about 5,000 households, is an important signal of consumer spending.

The Bank of Japan will then release the minutes from its most recent monetary policy meeting, providing in-depth insights into the economic conditions that influenced the central bank's decision on where to set interest rates.

Wednesday, May 26

Bernanke is due to speak at a conference in Tokyo, where his comments will likely be scrutinized for clues to future shifts in monetary policy.

Later Wednesday, Australia will publish a quarterly report on the change in the total inflation-adjusted value of construction projects completed.

The Gfk market research firm will then release data on German consumer sentiment. The report is based on a survey of about 2,000 consumers that asks about the relative level of past and future economic conditions. Also Wednesday, France will publish a report on consumer spending.

Meanwhile, the U.S. will publish key data on durable goods orders, a leading indicator of production. The country will also release a report on new home sales. The report, which shows an annualized number of new single-family homes that were sold during the previous month, is a key signal of overall economic health. Also Wednesday, an industry group will publish data on U.S. mortgage applications.

Japan and New Zealand will then release data on their respective trade balances, the difference in value between imported and exported goods.

Thursday, May 27

Australia will publish a quarterly report on the change in the total inflation-adjusted value of new capital expenditures made by private businesses. Switzerland will then release quarterly employment data, an important signal of consumer spending.

Later in the day, the U.S. will release data on initial jobless claims, a key indicator of overall economic health. The country will also publish a preliminary GDP report.

Germany, meanwhile, will publish preliminary data on consumer price inflation in the euro zone's largest economy. Japan will then release a raft of data on household spending, unemployment, consumer price inflation and retail sales.

Friday, May 28

The KOF research group will publish its Swiss Economic Barometer, a composite index based on 12 economic indicators. Canada will later release data on its current account, the difference in value between imported and exported goods, services, current transfers, and investment income.

Also Friday, the U.S. will release data on consumer price inflation and personal income and spending. An industry group will also publish a report on the manufacturing sector in the Chicago area, and the University of Michigan will release revised data on U.S. consumer sentiment and inflation expectations.

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