Investing.com - The pound ended the week close to 27-month highs against the dollar on Friday, with the dollar little changed after a report showed that the U.S. economy added more jobs than forecast in November.
GBP/USD hit session lows of 1.6290 on Friday, the lowest level since November 28 and was last up 0.07% to 1.6346.
Cable was likely to find support at 1.6290 and resistance at 1.6441, Monday’s high and the strongest level since August 2011.
The U.S. economy added 203,000 jobs in November, above expectations for jobs growth of 180,000, the Labor Department said. The unemployment rate fell to a five year low of 7.0% from 7.3% in October.
The report came one day after official data showed that the U.S. economy grew at an annual rate of 3.6% in the three months to September, well above the preliminary estimate for 2.6%.
The robust data raised the possibility that the Federal Reserve may start to scale back its USD85 billion-a-month asset purchase program as soon as its next monthly meeting on December 17 - 18.
Demand for sterling continued to be underpinned after a recent series of upbeat U.K. data indicated that the economic recovery is deepening, boosting hopes that the Bank of England may tighten monetary policy before other central banks.
The BoE left interest rates on hold at 0.5% on and left its asset purchase program unchanged at GBP375 million following its monthly meeting on Thursday, in a widely expected decision.
In the week ahead, the U.S. is to release what will be closely watched data on retail sales, while U.K. data on trade and industrial production will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Wednesday, as there are no relevant events on this day.
Monday, December 9
BoE Governor Mark Carney is to speak at an event in New York; his comments will be closely watched.
Tuesday, December 10
The U.K. is to publish data on manufacturing and industrial production and the trade balance.
Thursday, December 12
The U.S. is to produce data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as the weekly report on initial jobless claims.
Friday, December 13
The U.S. is to round up the week with data on producer price inflation.
GBP/USD hit session lows of 1.6290 on Friday, the lowest level since November 28 and was last up 0.07% to 1.6346.
Cable was likely to find support at 1.6290 and resistance at 1.6441, Monday’s high and the strongest level since August 2011.
The U.S. economy added 203,000 jobs in November, above expectations for jobs growth of 180,000, the Labor Department said. The unemployment rate fell to a five year low of 7.0% from 7.3% in October.
The report came one day after official data showed that the U.S. economy grew at an annual rate of 3.6% in the three months to September, well above the preliminary estimate for 2.6%.
The robust data raised the possibility that the Federal Reserve may start to scale back its USD85 billion-a-month asset purchase program as soon as its next monthly meeting on December 17 - 18.
Demand for sterling continued to be underpinned after a recent series of upbeat U.K. data indicated that the economic recovery is deepening, boosting hopes that the Bank of England may tighten monetary policy before other central banks.
The BoE left interest rates on hold at 0.5% on and left its asset purchase program unchanged at GBP375 million following its monthly meeting on Thursday, in a widely expected decision.
In the week ahead, the U.S. is to release what will be closely watched data on retail sales, while U.K. data on trade and industrial production will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Wednesday, as there are no relevant events on this day.
Monday, December 9
BoE Governor Mark Carney is to speak at an event in New York; his comments will be closely watched.
Tuesday, December 10
The U.K. is to publish data on manufacturing and industrial production and the trade balance.
Thursday, December 12
The U.S. is to produce data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as the weekly report on initial jobless claims.
Friday, December 13
The U.S. is to round up the week with data on producer price inflation.