Investing.com – Last week saw the pound tumble from a 6-month high against the U.S. dollar, as risk aversion increased amid fears over a slowdown in the rate of global economic growth.
GBP/USD hit 1.5561 on Thursday, the pair's lowest since July 30; the pair subsequently consolidated at 1.5580 by close of trade on Friday, plummeting 2.76% over the week.
Cable is likely to find support at 1.5442, the low of July 27 and resistance at 1.5859, the high of August 11.
On Tuesday, the U.S. Federal Reserve unveiled plans to boost the flagging U.S. economy by reinvesting funds from maturing mortgage bonds into government debt.
On Wednesday, the Bank of England said in its quarterly inflation report that Britain's economic growth will peak at 3% next year, below the 3.6% the bank predicted in its last report.
Following the release of the report, Mervyn King, the Bank's Governor, said that while "the UK recovery is likely to continue, the overall outlook is weaker."
In the coming week, the spotlight will be on U.S. initial jobless claims as well as U.S. data on building permits, manufacturing and inflation.
Meanwhile, Britain is due to publish data on consumer price inflation. The Bank of England is to publish the minutes of its most recent meeting of the banks monetary policy committee.
The country is also to produce data on retail sales and industrial order expectations.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect GBP/USD. The guide omits Friday as there are no significant events on this day.
Monday, August 16
The U.S. is to begin the week by producing a report on the balance of foreign and domestic investment as well as data on manufacturing activity in New York State. The country is also to produce important data on home sales.
Tuesday, August 17
The U.S. is to produce key data on producer price inflation, a leading indicator of economic growth. The country is also to produce data on building permits and housing starts, two leading indicators of growth in the construction sector.
The U.S. will also produce important data on industrial production, a leading indicator of economic health.
The U.K. is to produce key data on consumer price inflation, a leading indicator of economic growth.
Wednesday, August 18
The U.S. is to produce data on crude oil inventories.
The Bank of England is to publish the minutes of its most recent meeting of the banks monetary policy committee. The data contains important insights into the banks outlook on economic conditions.
Thursday, August 19
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health. The country is also to produce key data on manufacturing activity in Philadelphia.
The U.K. is to produce a report on retail sales, a leading indicator of consumer spending. The Bank of England is to publish data on mortgage approvals and public sector borrowing.
GBP/USD hit 1.5561 on Thursday, the pair's lowest since July 30; the pair subsequently consolidated at 1.5580 by close of trade on Friday, plummeting 2.76% over the week.
Cable is likely to find support at 1.5442, the low of July 27 and resistance at 1.5859, the high of August 11.
On Tuesday, the U.S. Federal Reserve unveiled plans to boost the flagging U.S. economy by reinvesting funds from maturing mortgage bonds into government debt.
On Wednesday, the Bank of England said in its quarterly inflation report that Britain's economic growth will peak at 3% next year, below the 3.6% the bank predicted in its last report.
Following the release of the report, Mervyn King, the Bank's Governor, said that while "the UK recovery is likely to continue, the overall outlook is weaker."
In the coming week, the spotlight will be on U.S. initial jobless claims as well as U.S. data on building permits, manufacturing and inflation.
Meanwhile, Britain is due to publish data on consumer price inflation. The Bank of England is to publish the minutes of its most recent meeting of the banks monetary policy committee.
The country is also to produce data on retail sales and industrial order expectations.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect GBP/USD. The guide omits Friday as there are no significant events on this day.
Monday, August 16
The U.S. is to begin the week by producing a report on the balance of foreign and domestic investment as well as data on manufacturing activity in New York State. The country is also to produce important data on home sales.
Tuesday, August 17
The U.S. is to produce key data on producer price inflation, a leading indicator of economic growth. The country is also to produce data on building permits and housing starts, two leading indicators of growth in the construction sector.
The U.S. will also produce important data on industrial production, a leading indicator of economic health.
The U.K. is to produce key data on consumer price inflation, a leading indicator of economic growth.
Wednesday, August 18
The U.S. is to produce data on crude oil inventories.
The Bank of England is to publish the minutes of its most recent meeting of the banks monetary policy committee. The data contains important insights into the banks outlook on economic conditions.
Thursday, August 19
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health. The country is also to produce key data on manufacturing activity in Philadelphia.
The U.K. is to produce a report on retail sales, a leading indicator of consumer spending. The Bank of England is to publish data on mortgage approvals and public sector borrowing.