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Forex - GBP/USD weekly outlook: Feb. 22-26

Published 02/21/2010, 05:18 AM
GBP/USD
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Investing.com - The week beginning Feb. 22 follows one during which the pound fell to a 9-month low against the U.S. dollar, in the wake of the Federal Reserve's surprise decision to raise an emergency bank-lending rate. 

After GBP/USD hit 1.5344 on Friday, the pair's lowest rate since May 19, it bounced back to reach 1.5469 by the close of trade. Cable is likely to find resistance at 1.5816, Wednesday's high, and support at 1.5344. 

Next week, Fed chief Bernanke is scheduled to appear before both the financial committee of the House of Representatives and the Senate banking panel, where his testimony is expected to shed light on the sudden rate move. 

Jittery markets will also scrutinize the release of preliminary U.S. GDP figures, as well as data on new home sales, existing home sales, durable goods orders and unemployment in the United States. 

The Bank of England, meanwhile, is set to impact the markets with its officials' comments at the British parliament's inflation report hearings and with the testimony of its governor, Mervyn King, at the Banking Commission hearing. 

In addition, traders will await the release of Britain's revised GDP data, as well as the publication of the CBI realized sales index, a key indicator of consumer spending. 

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect GBP/USD. The guide begins on Tuesday, due to the lack of significant events in the U.S. and Britain on Monday. 

Tuesday, Feb. 23 

Senior Bank of England officials, including King, will then testify on inflation and Britain's economic outlook before Parliament's Treasury Committee. 

Also Tuesday, the Conference Board will publish its U.S. Consumer Confidence index, which offers an outlook on present and future economic conditions. 

Wednesday, Feb. 24 

Adam Posen, a member of the Bank of England's Monetary Policy Committee, is set to participate in a panel discussion at the Euromoney Bond Investors Congress in London. 

Later in the day, Bernanke is due to appear before the financial committee of the House of Representatives. Shortly afterward, the U.S. will publish data on new home sales, a leading indicator of economic health. 

Thursday, Feb. 25 

King is set to speak at the Banking Commission Hearing in London, after which the Confederation of British Industry will release its monthly Realized Sales index, which is based on a survey of retailers and wholesalers. 

Also Thursday, the U.S. will publish data on core durable goods orders and unemployment claims. Bernanke is also set to testify before the Senate Banking, Housing and Urban Affairs Committee. 

Friday, Feb. 26 

Britain's Nationwide Building Society will release its Housing Price Index, a key indicator of the housing industry's health. Britain will also release revised figures for its GDP, the broadest measure of economic activity. 

The U.S. will end the week with the publication of preliminary data on its GPD; the National Association of Realtors will also release its monthly report on existing home sales in the U.S.

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