Forex - Weekly outlook: March 15-19

Investing.com – Last week saw the U.S. dollar slide to a 1-month trough against the euro and a 2-week low against the pound, as investors' risk aversion abated in the wake of upbeat economic data from the euro zone.

Reports that euro zone nations are close to agreeing on a bailout package for Greece are likely to whet risk appetite further next week. Official confirmation of such a deal may emerge after finance ministers from the 16-nation region meet on Monday to discuss financial aid for the debt-laden country.

A number of other key economic events are set to occur next week in Europe: the release of the German Zew Economic Sentiment index, the publication of the euro zone's current account and a speech by the European Central Bank President, Jean-Claude Trichet.

The U.S. Federal Reserve, meanwhile, is due to announce its decision on interest rates. The United States is also scheduled to release key data on the housing market, long-term securities, inflation and the manufacturing sector.

Investors will also await the release of a report on unemployment claims in Britain and the minutes of a key Bank of England meeting; data on inflation and retail sales in Canada; and an interest rates decision by the Bank of Japan.

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

Monday, March 15

The week will begin in Britain with the release by Rightmove, an industry group, of its house price index, a leading indicator of the housing market's health.

Later in the day, the European Union will release quarterly data on unemployment in the euro zone. Switzerland, meanwhile, will publish its monthly producer price index, a key indicator of inflation.

The U.S. Treasury Department will then release its TIC Long-Term Purchases report, which measures the difference in value between foreign holdings of U.S. securities and U.S. holdings of foreign securities. The U.S. will also publish monthly data on industrial production.

Tuesday, March 16

The Reserve Bank of Australia will publish the minutes of its monetary policy meeting, providing in-depth insights into the economic conditions that influenced the central bank's recent interest rates decision.

Also Tuesday, the ZEW economic research institute will release its key German Economic Sentiment index, an indicator of the health of the euro zone's largest economy. The EU will also publish an annual consumer price index for the 16-nation region.

The U.S. will then release data on the number of new residential building permits issued and buildings upon which construction was begun during the previous month. Later Tuesday, the Fed will announce its interest rate decision, which will be accompanied by the release of a statement from the central bank's Federal Open Market Committee.

Wednesday, March 17

The Bank of Japan will announce its interest rates decision, after which it will release a monetary policy statement. The bank's governor, Masaaki Shirakawa, is also set to hold a press conference during which he will explain the decision.

Later Wednesday, Britain will publish monthly data on unemployment claims, a key signal of overall economic health. The Bank of England will also release the minutes of its recent Monetary Policy Committee's meeting, revealing the votes that members cast in their interest rates decision.

Meanwhile, Deutsche Bundesbank President Axel Weber, a voting member of the ECB, is set to speak at a conference in Bonn, during which he may drop hints regarding future monetary policy. Also Wednesday, the U.S. will publish its monthly PPI.

Thursday, March 18

The Westpac Banking Corporation will release its consumer sentiment index for New Zealand, a leading indicator of consumer spending. The EU will then release data on its current account, the difference in value between imported and exported goods, services, income flows, and unilateral transfers.

Britain, meanwhile, will release an important report on borrowing by its public sector, which has both debt and investment implications.

The U.S. will then publish key monthly CPI data and weekly data on initial jobless claims. Later Thursday, the Federal Reserve Bank of Philadelphia will release its manufacturing index, a closely watched measure of manufacturers' views regarding the outlook for their sector.

Friday, March 19

Germany will release its monthly PPI, after which Trichet will address a conference in Brussels. The Bank of England's deputy governor, Paul Tucker, is also set to speak at the event.

Canada will end the week with the release of its monthly CPI and monthly data on retail sales, a key gauge of consumer spending, which accounts for the majority of overall economic activity.