Investing.com – Last week saw sterling fall to a 2-week low against the U.S. dollar amid concern about the U.K.'s exposure to euro zone debt as fears grew that Europe's debt crisis could spread beyond Greece and Ireland.
GBP/USD hit 1.5574 on Friday, the pair’s lowest since September 21; the pair subsequently consolidated at 1.5589 by close of trade, plunging 2.43% over the week.
Cable is likely to find support at 1.5502, the low of September 21 and resistance at 1.5793, last Thursday’s high.
On Friday, European officials denied as "absolutely false" reports that Portugal was under pressure to seek a bailout while Spain also ruled out needing help to manage its finances.
Earlier in the week, U.K. Chancellor Geroge Osborne defended his governments contribution to the Irish bailout, saying that Ireland was a "friend in need" and insisted it was "overwhelmingly in Britain's national interest" for a major trading partner with an "interconnected" banking sector to have a stable economy and banking system.
Britian’s contribution to the bailout package for Ireland is expected to reach about GBP7 billion. British banks, including the Royal Bank of Scotland, have extensive liabilities in Ireland. However, Mr. Osborne insisted the offer to help was not based on fears about the health of U.K. banks.
Also Friday, more signs of a shaky U.K. housing market emerged, with the U.K.'s Land Registry reporting house prices in England and Wales fell 0.8% in October, the biggest monthly fall since February 2009.
Next week, the U.S. is to release data on ADP non-farm payrolls on Wednesday, ahead of the closely watched government data on non-farm employment on Friday. The government is also to publish its weekly report on initial jobless claims.
In addition, the U.S. is to release data on consumer confidence, pending home sales, manufacturing and service sector growth while the chairman of the Federal Reserve is to speak at a public engagement.
Meanwhile, the U.K. is to release official data on growth in the services and manufacturing sectors as well as industry data on house prices.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 29
The Bank of England is to publish data on public lending, an important indicator of consumer confidence as well as data on mortgage approvals.
Tuesday, November 30
In the U.K., research group Gfk is to publish data on consumer confidence, a leading indicator of consumer spending.
The U.S. is to publish industry data on house prices, an important indicator of economic health as well as data on consumer confidence, a leading indicator of consumer spending. The country is also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke is to speak at a public engagement; his comments will be closely watched for any clues to the future direction of monetary policy.
Wednesday, December 1
The U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish revised data on nonfarm productivity, as well as official data on manufacturing activity, construction spending, total vehicle sales and crude oil inventories. In addition, the Federal Reserve is to publish its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.
Meanwhile, the U.K. is to produce official data on manufacturing PMI, a leading indicator of manufacturing production, as well as industry data on house prices.
Thursday, December 2
The U.K. is to publish data on construction activity, a leading indicator of economic health.
Also Thursday, the U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health. The country will also release official data on pending home sales and natural gas storage.
Friday, December 3
The U.S. is to round up the week with key data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of economic health. The country is also to publish industry data on service sector growth as well as official data on factory orders.
The U.K. is to publish data on service sector growth, an important indicator of economic health.
GBP/USD hit 1.5574 on Friday, the pair’s lowest since September 21; the pair subsequently consolidated at 1.5589 by close of trade, plunging 2.43% over the week.
Cable is likely to find support at 1.5502, the low of September 21 and resistance at 1.5793, last Thursday’s high.
On Friday, European officials denied as "absolutely false" reports that Portugal was under pressure to seek a bailout while Spain also ruled out needing help to manage its finances.
Earlier in the week, U.K. Chancellor Geroge Osborne defended his governments contribution to the Irish bailout, saying that Ireland was a "friend in need" and insisted it was "overwhelmingly in Britain's national interest" for a major trading partner with an "interconnected" banking sector to have a stable economy and banking system.
Britian’s contribution to the bailout package for Ireland is expected to reach about GBP7 billion. British banks, including the Royal Bank of Scotland, have extensive liabilities in Ireland. However, Mr. Osborne insisted the offer to help was not based on fears about the health of U.K. banks.
Also Friday, more signs of a shaky U.K. housing market emerged, with the U.K.'s Land Registry reporting house prices in England and Wales fell 0.8% in October, the biggest monthly fall since February 2009.
Next week, the U.S. is to release data on ADP non-farm payrolls on Wednesday, ahead of the closely watched government data on non-farm employment on Friday. The government is also to publish its weekly report on initial jobless claims.
In addition, the U.S. is to release data on consumer confidence, pending home sales, manufacturing and service sector growth while the chairman of the Federal Reserve is to speak at a public engagement.
Meanwhile, the U.K. is to release official data on growth in the services and manufacturing sectors as well as industry data on house prices.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 29
The Bank of England is to publish data on public lending, an important indicator of consumer confidence as well as data on mortgage approvals.
Tuesday, November 30
In the U.K., research group Gfk is to publish data on consumer confidence, a leading indicator of consumer spending.
The U.S. is to publish industry data on house prices, an important indicator of economic health as well as data on consumer confidence, a leading indicator of consumer spending. The country is also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke is to speak at a public engagement; his comments will be closely watched for any clues to the future direction of monetary policy.
Wednesday, December 1
The U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish revised data on nonfarm productivity, as well as official data on manufacturing activity, construction spending, total vehicle sales and crude oil inventories. In addition, the Federal Reserve is to publish its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.
Meanwhile, the U.K. is to produce official data on manufacturing PMI, a leading indicator of manufacturing production, as well as industry data on house prices.
Thursday, December 2
The U.K. is to publish data on construction activity, a leading indicator of economic health.
Also Thursday, the U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health. The country will also release official data on pending home sales and natural gas storage.
Friday, December 3
The U.S. is to round up the week with key data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of economic health. The country is also to publish industry data on service sector growth as well as official data on factory orders.
The U.K. is to publish data on service sector growth, an important indicator of economic health.