Investing.com - The pound was little changed against the dollar in late trading on Friday, after falling to almost two-month lows earlier in the session after comments by a senior Federal Reserve official kept the door open for a rate hike next month.
GBP/USD was at 1.5400 late Friday, after falling to lows of 1.5334 earlier in the day, the lowest level since July 8.
The dollar found support after Fed Vice Chairman Stanley Fischer said it was still too early to determine whether to raise short-term interest rates from near zero, where they have been held since December 2008, at the bank’s September meeting.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.42% to 96.15 in late trading.
The index ended the week up 1.2% after rebounding from the seven-month trough of 92.52 set on Monday amid a broad based selloff in global financial markets.
The dollar had weakened as fears over a slowdown in growth in China roiled global markets, with equities and commodities the hardest hit. Fears over China also prompted investors to push back expectations on the timing of an initial rate hike by the Fed.
But market sentiment improved after Beijing moved to ease monetary policy in order to shore up growth. China's central bank lowered interest rates for the second time in two months on Tuesday.
The dollar received an additional boost after data on Thursday showed that the U.S. economy grew at a faster than expected rate in the second quarter.
The U.S. economy expanded at an annual rate of 3.7%, up from the initial estimate of 2.3%.
In the U.K., data on Friday confirmed that gross domestic product expanded 0.7% in the second quarter, unchanged from an initial estimate, but up from 0.4% in the three months to March.
In the week ahead, investors will be focusing on Friday’s U.S. jobs report for August, which could help to provide clarity on the likelihood of a near-term interest rate hike.
Markets will also be watching surveys of the U.S. manufacturing and service sectors, factory orders and trade data for fresh indications on the timing of a rate hike.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 31
The U.S. is to release figures on manufacturing activity in the Chicago region.
Tuesday, September 1
The U.K. is to publish reports on manufacturing activity and net lending.
In the U.S., the Institute of Supply Management is to report on manufacturing growth.
Wednesday, September 2
The U.K. is to publish data on construction sector activity.
The U.S. is to release the monthly ADP nonfarm payrolls report, as well as data on factory orders.
Thursday, September 3
The U.K. is to report on service sector activity.
The U.S. is to publish figures on trade and jobless claims and the ISM is to report on service sector growth.
Friday, September 4
The U.S. is to round up the week with the closely watched nonfarm payrolls report, and data on wage growth.