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Forex - GBP/USD weekly outlook: July 26-30

Published 07/25/2010, 10:35 AM
GBP/USD
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Investing.com – The week beginning July 26 follows one which saw the pound hit a 5-day high against the U.S. dollar on Friday, after data showed that the U.K. economy grew at its fastest pace in four years in the second quarter.

Earlier in the week, data showed that retail sales in the U.K. rose more than expected in June, posting the biggest monthly increase since May 2008.

GBP/USD hit 1.5448 on Friday, the pair's highest since July 16; the pair subsequently consolidated at 1.5407, gaining 0.77% on the week.

Cable is likely to find support at 1.5149, the low of July 22 and short-term resistance at 1.5471, the high of July 15.

The week ahead will see the U.S. publish preliminary data on the country's gross domestic product, the leading indicator of economic growth. The U.S. will also produce a key weekly report on initial jobless claims while the Federal Reserve is to publish its Beige Book.

The country will also publish data on the housing and manufacturing sectors, inflation, consumer confidence and revised data on consumer sentiment and inflation expectations.

Meanwhile, Britain will produce key data on house prices and industry data on retail sales. The Governor of the Bank of England, Mervyn King is to testify before the Treasury Select Committee in London, while the bank is also to produce data on lending and mortgage approvals.

Britain will also produce an important report on consumer confidence.

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

Monday, July 26

The U.S. will start the week by releasing data on new home sales, a leading indicator of economic health.

Tuesday, July 27

The U.S. is to release key data on consumer confidence as well as data on house prices, a leading indicator of the housing industry's health. The country will also release important data on its manufacturing sector.

The Confederation of British Industry is to produce data on retail sales.

Wednesday, July 28


The U.S. is to release data on durable goods orders, a leading indicator of production. The U.S. Federal Reserve is to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate. The country is also to release data on crude oil inventories.

The Governor of the Bank of England, Mervyn King is to testify before the Treasury Select Committee in London, traders will watch his comments closely for any clues to the future direction of monetary policy.

Thursday, July 29


The U.S. is to release data on initial jobless claims, the change in the number of people who applied for first time unemployment benefits in the preceding week.

Nationwide, the largest mortgage lender in the U.K. will produce data on house prices, a leading indicator of the health of the housing sector. Later in the day, the Bank of England will produce important data on lending and mortgage approvals. The country will also release data on consumer confidence.

Friday, July 30

The U.S. is to release preliminary data on its gross domestic product, the leading indicator of economic growth. The country is also to publish important data on inflation while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.

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