Major factors to affect the trading of the pair EUR/USD  for the week ending August 31st, 2012 are as under:

On Monday, August 27^th, 2012, data on Germany’s import price index, IFO expectations, IFO current assessment and IFO Business Climate was published. France reported net change in jobseekers data. In United States, Dallas’s Federal Reserve reported its manufacturing activity.

On Tuesday, August 28^th, 2012, Gfk consumer confidence survey was published in Germany while data on M3 money supply was reported for the euro zone. In United States, S&P/Case-Shiller home price index and S&P/Case-Shiller composite 20 index was released. Data on consumer confidence and manufacturing index was also reported in the US.

On Wednesday, August 29^th, data on consumer price index will published in Germany while in the United States, several indicators are expected which will include data on MBA mortgage applications, core personal consumption expenditure, gross domestic product figure, data on personal consumption and data on pending home sales. US Federal Reserve will publish its Beige book economic survey while US Energy Department will report inventories data for crude oil, gasoline and distillates.

On Thursday, August 30^th, 2012, Germany will report its unemployment rate and data on unemployment change. In the euro zone, data on services confidence, industrial confidence, economic confidence, consumer confidence and business climate indicator is to be published. United States will report its data on continuing claims, initial jobless claims, personal consumption expenditure, personal spending and personal income. Kansas City Federal Reserve reported its data on manufacturing activity while Energy Information Administration will report its data on natural gas supplies.

On Friday, August 31^st, 2012, data on retail sales will be reported in Germany while Italy will come up with figure of unemployment rate. In the euro zone, data on consumer price index and unemployment rate is expected. Moreover, International Monetary Fund’s official Lagarde will address at Jackson Hole Economic Policy Symposium.

In United States, data on factory orders and Chicago’s purchasing managers’ index is to be reported while University of Michigan will publish its report on consumer confidence. US Federal Reserve’s Chairman will also address at Jackson Hole Economic Policy Symposium.

The weekly outlook for the pair EUR/USD for the period ending June 1^st, 2012 is as under:

On Monday, markets in United States remained closed in observance of the Memorial Day while n the euro zone, data on Italian business confidence was reported

On Tuesday, May 29^th, 2012, Germany’s import price index and consumer price index was released in the single currency region. In United States, data on S&P/Case-Shiller US Home Price Index was published along with data on consumer confidence and manufacturing activity by Dallas Federal Reserve.

On Wednesday, May 30^th, 2012, data on M3 money supply, industrial confidence, economic confidence, consumer confidence, business climate indicators and service confidence was published in the euro zone while United States, released its data on MBA mortgage applications and pending home sales. The US Federal Reserves’ officials, Dudley and Fisher also separately spoke on economy at public events in New York and San Antonio respectively.

On Thursday, May 31^st, Germany is expected to report its data on retail sales, unemployment change and unemployment rate. The euro zone will release its separate data on the region’s consumer price index. In the U.S., several reports are expected which will include data on job cuts, consumer outlook index, ADP employment change, personal consumption, continuing claims, initial jobless claims, core personal consumption expenditure, gross domestic product price index, and Chicago’s purchasing managers index. Further, Energy Information Administration will report its inventories data on crude oil, gasoline, natural gas and distillates.

On Friday, June 1^st, 2012, Italy, France and Germany will report their purchasing managers’ index for the manufacturing sector while euro zone will publish its separate PMI for the manufacturing sector and data on unemployment rate. Italy is expected to produce its data on unemployment rate and the budget balance. In the United States, data on unemployment rate, average hourly earnings, change in household employment, personal income, personal consumption expenditure, unemployment rate, personal spending, change in non-farm payrolls, change in private payrolls, change in manufacturing payrolls, construction spending and purchasing managers’ index will be reported. Institute of Supply and Management will also report its data on manufacturing activity and prices paid.

The US dollar gained on Wednesday against its major counterparts and extended its longest rally in more than two decades. The greenback mainly benefited over the news that there was no consensus between the FOMC members that whether the further quantitative easing should be implemented.

Global head of G-10 foreign exchange strategy, Alan Ruskin from Deutsche Bank  commented, “The bullish news is that several FOMC members’ views on retreating from more unorthodox measures were conditional on the economy not losing momentum or a reemergence of downside risks to their forecast, both these pre-conditions are showing more signs of materializing” since the meeting last month.

The ICE dollar index DXY which tracks the greenback’s movement against its major counterparts jumped to 81.359 on Wednesday as compared to 81.286 on Wednesday’s North American trading session. The US dollar has posted its longest rally since 1985.

The single currency traded at 1.2726 versus the US dollar on Wednesday as compared to 1.2725 on Tuesday’s late trading hours. The euro has declined 3.9 percent in month of May till now. Analysts expect the euro to find support at 1.2625 versus the US dollar, however it is also forecasted that the pair EUR/USD will fall to 1.24 by the third quarter.

Among other currencies, the British Pound fell to 1.5916 against the greenback to 1.5996 on late Tuesday. Against the Japanese yen the US dollar gained to 80.28 as compared to 80.25 on late Tuesday.

Economic events which could affect the trading of the pair EUR/USD for the week ending May 11th, 2012 are as follows:

On Monday, May 7^th, 2012, euro zone released its Sentix Investor Confidence while in Germany reported its data on factory orders. In United States, data on consumer credit was reported.

On Tuesday, Germany came up with data on industrial production and wholesale price inde while in United States, data on NFIB Small Business Optimism and TIPP economic optimism was reported while US Federal Reserve’s officials Lacker and Fisher addressed on US economy at separate events.

On Wednesday, May 9^th, official figure on Germany’s trade balance and current account will be reported in the euro zone while in United States, several reports will be published including data on MBA Mortgage approvals, wholesale inventories and inventories data on crude oil, gasoline and distillates by the US Department of Energy. Moreover, US Federal Reserve’s official Plosser and Pianalto will speak in Philadelphia and Lexington respectively.

On Thursday, May 10^th, 2012, European Central Bank will publish its monthly report for the single currency region while in United States, reports on weekly initial jobless claims, continuing claims, import price index, monthly budget statement and natural gas inventories data by EIA will be published.  Moreover, Federal Reserve’s official Kocherlakota will address on monetary policy in Minneapolis on Thursday.

On Friday, May 11^th, data on Germany’s consumer price index will be released while European Commission will publish its data on economic growth forecasts. In United States, data on producer price index and University of Michigan’s index on consumer confidence will be reported.

The euro gained versus the US dollar on Thursday as the latest reports indicated chances of higher participation in bond swap deal by Greece’s Creditors. The investors were now on the ease as the threat of messy default by the Greece by eliminated.  As per the latest reports more than 75 percent of private creditors were interested in swap deal. Investors were upbeat about the single currency after the European Central Bank’s President Mario Draghi pointed out the progress of euro zone’s economy in an optimistic manner. In his monthly conference the ECB’s President rated the central bank’s long term refinancing operation as unquestionable success for reducing the risk of credit default.

The euro gained to 1.3286 against the US dollar on Thursday as compared to 1.3154 on Wednesday’s North American trading session. The pair EUR/USD touched the intraday high of 1.3133. The euro also gained versus the Japanese yen to 108.40 on Thursday as compared to 106.80 on Wednesday.

Analysts on the other hand has a different opinion and said that the long term fundamental outlook for the euro zone weak. Some of analysts were also of the opinion that the shared currency is also trading at its highs technically and would see correction. According to MacNel Curry from Bank of America Merrill Lynch the euro is expected to decline to 1.2621 against the US dollar while analysts from RBC Capital are looking at 1.31 for EUR/USD pair.

The dollar index DXY which measures the US dollar’s performance versus its six major rival currencies declined to 79.090 on Thursday as compared to 79.692 on Wednesday’s late trading hours.

Among other currencies, the British Pound gained to 1.5833 against the US dollar on Thursday as compared to 1.5743 on late Wednesday. Against the Japanese Yen, the US dollar advanced to 81.60 on Thursday as compared to as compared to 81.21 on Wednesday’s late trading hours.

The US dollar jumped on Tuesday and reached its highest level since November versus the Japanese yen as the Bank of Japan has decided to expand its asset purchase program. The Bank of Japan disclosed that the asset purchase program will be increased by 10 trillion yen totaling to 65 trillion yen.

The central bank of Japan also decided to keep the key interest rate unchanged within the range of 0 to 0.1 percent with its temporary inflation target of 1 percent. Currency strategist, Chris Walker from UBS commented, “This is a significant amount of additional easing, and with the BOJ’s preferred measure of core inflation currently running at only -0.1% year-on-year, investors are bound to expect further bouts of monetary accommodation down the road.”

The US dollar gained to 78.49 versus the Japanese yen on Tuesday as compared to 77.60 in Monday’s late trading hours. The euro also advanced 0.6 percent versus the yen to 102.73.

The dollar index DXY which measures the US dollar’s performance versus its six major rival currencies surged to 79.607 on Tuesday as compared to 78.963 on Monday’s North American trading session.

The euro also fell to 1.3094 against the greenback on Tuesday as the discussions for Greece’s bailout package were postponed. The pair EUR/USD stood at 1.3201 on late Monday.

Among other currencies, the British Pound declined to 1.5661 against the US dollar on Tuesday as compared to 1.5776. The Australian dollar fell to 1.0648 against the US dollar as compared to 1.0743 on late Monday.