Weekly outlook for the pair GBP/USD for the period ending May 11th is as follows:

Yesterday, in United States, data on consumer credit was reported. On Tuesday, United States published its data on NFIB Small Business Optimism and TIPP economic optimism while US Federal Reserve’s officials Lacker and Fisher addressed on monetary policy and US economy at separate events. United Kingdom reported its data on employment confidence, house price balance, and BRC shop price index.

On Wednesday, United Kingdom will publish the report on BRC sales while United States will release several reports including data on MBA Mortgage approvals, wholesale inventories, and supplies data on crude oil, gasoline and distillates by the Energy Information Administration. Further, US Fed’s official Plosser and Pianalto are expected to speak in Philadelphia and Lexington respectively.

On Thursday, in United Kingdom, data on trade balance, manufacturing production and industrial production will be published. Moreover, the Bank of England will release figures on its asset purchase target and key interest rate decision. UK will also release it gross domestic product estimate.

In United States, official figures on weekly initial jobless claims, continuing claims, import price index, monthly budget statement and natural gas inventories data by EIA will be published.  Federal Reserve’s official Kocherlakota will address on monetary policy in Minneapolis on Thursday which will be closely watched to assess the future direction of the monetary policy.

On Friday, United Kingdom is expected to publish its report on producer price index on Friday. In United States, data on producer price index and University of Michigan’s index on consumer confidence will be reported

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 traded with mixed sentiments on Wednesday after a volatile session. The euro gained to 1.3869 versus the US dollar on Wednesday as compared to 1.3737 on Tuesday’s North American Trading session. The pair EUR/USD touched the intraday high of 1.3745. Investors were mostly mixed about the latest bailout plan for the euro zone and debated its outcomes.

The single currency was also up 0.5 percent versus the Swiss franc to 1.2412 while gained 0.6 percent against the Japanese Yen to 105.44.

The euro has been stronger since the news of France and Germany agreeing to leverage European Financial Stability Facility for 440 billion euros which will give the EFSF with 2 trillion euros of buying power. Moreover on Wednesday, German Finance Minister Wolfgang Schaeuble said that EFSF could even be leveraged up to 1 trillion euros.

The dollar index DXY which measures the US dollar’s performance versus its six major counterpart currencies gained to 77.152 on Wednesday as compared to 77.146 on Tuesday’s late trading hours. The greenback got stronger on the improved US economic reports as the data on housing starts and consumer level inflation improved for the month of September.

Among other currencies, the British Pound surged to 1.5758 against the US dollar on Wednesday as compared to 1.5651 on late Tuesday. Negative sentiments were seen in the start of the session for the British Pound as the Bank of England’s minutes of its latest meeting disclosed the decision of additional asset purchases of 75 billion pounds in its quantitative easing program.

The US dollar slightly fell to 76.79 versus the Japanese yen on Wednesday as compared to 76.83 on last Tuesday.

List of major events to affect the trading of the pair EUR/USD for the week ended October 21st, 2011 is as under.

On Monday, October 17th, 2011, United States, reported its official data on industrial production and capacity utilization rate. Moreover, report on manufacturing activity in New York State was also published.

Today on Tuesday October 18th, 2011,In United States official data on consumer price inflation was reported along with data on country’s balance of domestic and foreign investment. In Euro zone, ZEW Center for Economic Research released the report on economic sentiment in Germany along with report on economic sentiment for the euro zone region.

On Wednesday, October 19th, 2011, In United States, several reported will be published which include official report on building permits, housing starts, consumer price inflation and crude oil inventories. Moreover, US Federal Reserve will also publish its Beige Book.  In euro zone, report on region’s current account will be published.

On Thursday, October 20th, 2011, weekly data on initial jobless claims will be published in United States along with reports on Philadelphia’s manufacturing activity and industry report on existing home sales. Whereas, in euro zone, Germany will report its official figure on country’s producer price inflation.

On Friday, October 21st, 2011, Ifo Institute will release its report on German business climate. Moreover, ECB President Jean-Claude Trichet will be publicly address at an event in Warsaw, which will be closely watched to get hints for future direction of the region’s monetary policy.

The US dollar strengthened on Wednesday in reaction to US ADP Nonfarm Employment data. According to the latest data, US non-farm employment change increased to 91,000 the last month as compared to 89,000 in prior month.

The single currency fell 0.06 percent to 1.3342 against the greenback by the end of US session. The pair EUR/USD is expected to find support at 1.3147 while its resistance could be seen at 1.3601. The euro also lost ground against the Japanese Yen but gained versus the British Pound. The euro surged 0.11 percent to close at 0.8630 versus the British Pound and fell 0.10 percent against the Japanese Yen to 102.43 at the time of writing.

The US dollar also fell 0.05 percent versus the Japanese Yen. The pair USD/JPY is expected to find support at 76.50 while its resistance could be seen at 77.27 which also happen to be Monday’s high.

The US dollar however gained 0.16 percent versus the British Pound to 1.5463 at the time of writing. The pair GBP/USD is expected to find at support at 1.5341 and likely to see at resistance at 1.5666 which also happens to be Friday’s high.

The greenback weakened on Tuesday especially against the single currency as the euro gained in reaction to European Union’s decision for a coordinated action for recapitalization of the region’s banks. Finance ministers from different European countries are now looking for ways to recapitalize euro-zone’s financial institutions which would result into additional measures for the region’s banks.

The dollar index DXY which measures the US dollar’s performance against its six major rival currencies declined to 78.999 on Tuesday as compared to 79.577 on Monday’s North American trading session.

The euro gained to 1.3337 against the US dollar on Tuesday as compared to 1.3182 on Monday’s late trading hours.

Ben Bernanke further added to negativity for the greenback and showed his concerns over the future economic growth. Currency analysts David Song from DailyFX.com commented, “The dollar traded heavy following Fed Chairman Ben Bernanke’s testimony as the central bank head kept the door open to conduct another round of quantitative easing, the cautious tone held by Mr. Bernanke suggests the FOMC will carry its easing cycle into the following year, and the central bank may employ further policy tools to stimulate the ailing economy as it faces an increased risk of a double-dip recession.”

The British Pound also gained to 1.5481 against the US dollar on Tuesday as compared to 1.5445 on late Monday. However, against the Japanese Yen, the US dollar gained to 76.83 on Tuesday.