Investing.com - The pound ended the week close to a one-week high against the U.S. dollar on Friday, boosted by an unexpected increase in U.K. retail sales, but gains were capped amid uncertainty over a second bailout deal for Greece.
GBP/USD hit 1.5862 on Friday, the pair’s highest since February 9; the pair subsequently consolidated at 1.5826 by close of trade, gaining 0.32% on the week.
Cable is likely to find support at 1.5789, Friday’s low and resistance at 1.5904, the high of February 7 and an almost three-month high.
Sterling’s gains came after the U.K. Office for National Statistics said that retail sales rose 0.9% in January, confounding expectations for a 0.2% drop. The data added to hopes that more easing measures by the Bank of England may not be necessary.
On Tuesday, the BoE’s quarterly inflation report revised up the bank’s two-year inflation forecast, dampening expectations for more quantitative easing measures.
Also Tuesday, ratings agency Moody’s put the U.K.’s triple-A credit rating on negative outlook, citing a weaker outlook for growth and risks from the debt crisis in the euro zone.
The pound was also higher against the euro on Friday, but the single currency remained supported after European leaders expressed optimism that an agreement on a second EUR130 billion bailout for Greece would be reached at Monday's meeting of euro zone finance ministers.
Without a bailout, Greece faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.
Market sentiment was also boosted by a string of improving U.S. economic data.
On Thursday, the U.S. Department of Labor said initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, confounding expectations for an increase to 364,000.
On Friday, the U.S. Conference Board said that its index of leading economic indicators increased for the fourth consecutive month in January.
In the week ahead, markets will be keenly awaiting the outcome of Monday’s meeting of euro zone finance ministers, while markets in the U.S. will be closed for the Presidents Day holiday. Meanwhile, the U.K. is to release revised data on fourth quarter economic growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 20
The U.K. is to release industry data on house price inflation, a key indicator of the housing industry’s health.
Markets in the U.S. will remain closed for the Presidents Day holiday.
Tuesday, February 21
The U.K. is to release official data on public sector net borrowing.
Wednesday, February 22
The BoE is to publish the minutes of its January policy-setting meeting, which will provide investors with an in-depth insight into current economic conditions from the bank’s perspective.
Also Wednesday, the U.S. is to release industry data on existing home sales, a leading indicator of demand in the housing market, followed by official data on crude oil stockpiles.
Thursday, February 23
The U.K. is to release industry data on mortgage approvals, an important indicator of housing market demand as well as data on industrial order expectations, a key gauge of economic health.
The U.S. is to release government data on unemployment claims, an important signal of overall economic health.
Meanwhile, finance ministers and central bankers are to meet throughout the day for the seventh G20 meeting, in Mexico.
Friday, February 24
The U.K. is to produce revised data on fourth quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy's health. The country is also to release preliminary data on business investment, a leading indicator of economic health.
The U.S. is to round up the week with a revised report by the University of Michigan on consumer sentiment, followed by government data on new home sales, an important signal of economic health.
GBP/USD hit 1.5862 on Friday, the pair’s highest since February 9; the pair subsequently consolidated at 1.5826 by close of trade, gaining 0.32% on the week.
Cable is likely to find support at 1.5789, Friday’s low and resistance at 1.5904, the high of February 7 and an almost three-month high.
Sterling’s gains came after the U.K. Office for National Statistics said that retail sales rose 0.9% in January, confounding expectations for a 0.2% drop. The data added to hopes that more easing measures by the Bank of England may not be necessary.
On Tuesday, the BoE’s quarterly inflation report revised up the bank’s two-year inflation forecast, dampening expectations for more quantitative easing measures.
Also Tuesday, ratings agency Moody’s put the U.K.’s triple-A credit rating on negative outlook, citing a weaker outlook for growth and risks from the debt crisis in the euro zone.
The pound was also higher against the euro on Friday, but the single currency remained supported after European leaders expressed optimism that an agreement on a second EUR130 billion bailout for Greece would be reached at Monday's meeting of euro zone finance ministers.
Without a bailout, Greece faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.
Market sentiment was also boosted by a string of improving U.S. economic data.
On Thursday, the U.S. Department of Labor said initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, confounding expectations for an increase to 364,000.
On Friday, the U.S. Conference Board said that its index of leading economic indicators increased for the fourth consecutive month in January.
In the week ahead, markets will be keenly awaiting the outcome of Monday’s meeting of euro zone finance ministers, while markets in the U.S. will be closed for the Presidents Day holiday. Meanwhile, the U.K. is to release revised data on fourth quarter economic growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 20
The U.K. is to release industry data on house price inflation, a key indicator of the housing industry’s health.
Markets in the U.S. will remain closed for the Presidents Day holiday.
Tuesday, February 21
The U.K. is to release official data on public sector net borrowing.
Wednesday, February 22
The BoE is to publish the minutes of its January policy-setting meeting, which will provide investors with an in-depth insight into current economic conditions from the bank’s perspective.
Also Wednesday, the U.S. is to release industry data on existing home sales, a leading indicator of demand in the housing market, followed by official data on crude oil stockpiles.
Thursday, February 23
The U.K. is to release industry data on mortgage approvals, an important indicator of housing market demand as well as data on industrial order expectations, a key gauge of economic health.
The U.S. is to release government data on unemployment claims, an important signal of overall economic health.
Meanwhile, finance ministers and central bankers are to meet throughout the day for the seventh G20 meeting, in Mexico.
Friday, February 24
The U.K. is to produce revised data on fourth quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy's health. The country is also to release preliminary data on business investment, a leading indicator of economic health.
The U.S. is to round up the week with a revised report by the University of Michigan on consumer sentiment, followed by government data on new home sales, an important signal of economic health.