Weekly Outlook: 2014, February 23 - March 02

AUD/USD Fundamentals - weekly outlook: February 24 - 28

The Australian dollar ended the week lower against its U.S. counterpart on Friday, amid expectations that the Federal Reserve will continue to gradually reduce the pace of its asset purchase program.

Tuesday, February 25

• The U.S. is to release data on consumer confidence and a private sector report on house price inflation.

Wednesday, February 26

• Australia is to publish data on completed construction work.
• The U.S. is to release data on new home sales, a leading indicator of demand in the housing market.

Thursday, February 27

• Australia is to release data on private capital expenditure.
• The U.S. is to release data on durable goods orders, a leading indicator of production, and the weekly report on initial jobless claims.

Friday, February 28

• The U.S. is to round up the week with revised data on fourth quarter growth, a report on manufacturing activity in the Chicago region, revised data on consumer sentiment and private sector data on pending home sales.

NZD/USD Fundamentals - weekly outlook: February 24 - 28

The New Zealand weakened against its U.S. counterpart on Friday, as investors continued to look past a recent series of disappointing U.S. economic reports, attributing them to severely cold winter weather.

Tuesday, February 25

• New Zealand is to produce data on inflation expectations.
• The U.S. is to release data on consumer confidence and a private sector report on house price inflation.

Wednesday, February 26

• The U.S. is to release data on new home sales, a leading indicator of demand in the housing market.
• Later Wednesday, New Zealand is to release a report on the trade balance.

Thursday, February 27

• The U.S. is to release data on durable goods orders, a leading indicator of production, and the weekly report on initial jobless claims.

Friday, February 28

• New Zealand is to release data on business confidence.
• The U.S. is to round up the week with revised data on fourth quarter growth, a report on manufacturing activity in the Chicago region, revised data on consumer sentiment and private sector data on pending home sales.

GBP/USD Fundamentals - weekly outlook: February 24 - 28

The pound ended the week lower against the dollar on Friday after a report showed that U.K. retail sales fell more sharply than expected in January, dampening optimism over the economic recovery.

Tuesday, February 25

• The U.K. is to release private sector reports on mortgage approvals and retail sales.
• The U.S. is to release data on consumer confidence and a private sector report on house price inflation.

Wednesday, February 26

• The U.K. is to publish revised data on fourth quarter economic growth, as well as preliminary data on business investment.
• The U.S. is to release data on new home sales, a leading indicator of demand in the housing market.

Thursday, February 27

• The U.S. is to release data on durable goods orders, a leading indicator of production, and the weekly report on initial jobless claims.

Friday, February 28

• The U.S. is to round up the week with revised data on fourth quarter growth, a report on manufacturing activity in the Chicago region, revised data on consumer sentiment and private sector data on pending home sales.

EUR/USD Fundamentals - weekly outlook: February 24 - 28

The euro was higher against the dollar on Friday following the release of weaker-than-expected data on U.S. existing home sales, amid ongoing concerns over the impact of severe winter weather on the economic recovery.

Monday, February 24

• The euro zone is to release revised data on consumer price inflation, while the Ifo Institute is to publish a report on German business climate.

Tuesday, February 25

• The European Commission is to publish its economic forecasts for European Union member states.
• The U.S. is to release data on consumer confidence and a private sector report on house price inflation.

Wednesday, February 26

• In the euro zone, Germany is to release a report on Gfk consumer climate.
• The U.S. is to release data on new home sales, a leading indicator of demand in the housing market.

Thursday, February 27

• In the euro zone, Germany is to publish preliminary data on consumer inflation, as well as data on the change in the number of people unemployed.
• The U.S. is to release data on durable goods orders, a leading indicator of production, and the weekly report on initial jobless claims.

Friday, February 28

• The euro zone is to release preliminary data on consumer inflation and a separate report on the unemployment rate across the currency bloc. Germany is to publish data on retail sales.
• The U.S. is to round up the week with revised data on fourth quarter growth, a report on manufacturing activity in the Chicago region, revised data on consumer sentiment and private sector data on pending home sales.

The current account balance is a measure of how a lot of cash is streaming out of the nation compared with what amount is streaming in from foreign sources. In the event that there is a net inflow of funds, the nation is said to have a current account overflow. In the event that there is a net outpouring of funds, the nation is said to have a current account shortage. Constant records of current account shortages may prompt a characteristic depreciation of a nation's currency.