Investing.com – The pound closed higher against the U.S. dollar in thin year-end trade on Friday, following data showing an unexpected rise in U.K. house prices and as thin trade exaggerated price moves.
GBP/USD hit 1.5663 on Friday; the pair’s highest since December 15; the pair subsequently consolidated at 1.5586 by close of trade, gaining 0.94% over the week.
Cable is likely to find support at 1.5349, the low of December 29 and resistance at 1.5773, the high of December 15.
Lender Nationwide said U.K. house prices rose 0.4% in December, the first rise since May, defying forecasts for a 0.3% decline. The pound was also pushed higher as the dollar came under pressure from buying of the euro.
The pound lost 4% against the U.S. dollar in 2010 looks set to continue to perform poorly well into 2011 with government spending cuts and a hike in value added tax expected to hit consumer spending and increase unemployment.
In the week ahead, the U.S. is to release employment data for December on Friday while Federal Reserve Chairman Ben Bernanke is to testify before the Senate budget panel the same day.
Meanwhile, the U.K. is to publish data on house prices and activity in the manufacturing and service sectors.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, January 3
Markets in the U.K. are to remain closed for the New Year’s Day bank holiday.
The U.S. is to publish industry data on manufacturing activity, a leading indicator of economic health.
Tuesday, January 4
The U.K. is to publish industry data on house prices, a leading indicator of the housing industry's health. Later in the day, the country is to release reports on manufacturing, net lending to individuals and final mortgage approvals.
In the U.S., the Federal Reserve is to publish the minutes of its most recent monetary policy committee meeting, which provide an in-depth insight into the country’s economic and financial outlook. The country is also to publish official data on factory orders, a leading indicator of industrial production.
Wednesday, January 5
The U.S. is to publish data on ADP non-farm payrolls, which leads the government-released employment data by two days. Later in the day, the country is to publish a report on service sector growth, a leading indicator of economic growth as well as a report on crude oil stockpiles.
The U.K. is to publish data on activity in the construction sector, an important indicator of economic health.
Thursday, January 6
The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health.
Meanwhile, the U.K. is to publish a report on activity in the services sector.
Friday, January 7
The U.S. is to round up the week with key data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of economic health. Later in the day, the country is to publish a report on consumer credit.
GBP/USD hit 1.5663 on Friday; the pair’s highest since December 15; the pair subsequently consolidated at 1.5586 by close of trade, gaining 0.94% over the week.
Cable is likely to find support at 1.5349, the low of December 29 and resistance at 1.5773, the high of December 15.
Lender Nationwide said U.K. house prices rose 0.4% in December, the first rise since May, defying forecasts for a 0.3% decline. The pound was also pushed higher as the dollar came under pressure from buying of the euro.
The pound lost 4% against the U.S. dollar in 2010 looks set to continue to perform poorly well into 2011 with government spending cuts and a hike in value added tax expected to hit consumer spending and increase unemployment.
In the week ahead, the U.S. is to release employment data for December on Friday while Federal Reserve Chairman Ben Bernanke is to testify before the Senate budget panel the same day.
Meanwhile, the U.K. is to publish data on house prices and activity in the manufacturing and service sectors.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, January 3
Markets in the U.K. are to remain closed for the New Year’s Day bank holiday.
The U.S. is to publish industry data on manufacturing activity, a leading indicator of economic health.
Tuesday, January 4
The U.K. is to publish industry data on house prices, a leading indicator of the housing industry's health. Later in the day, the country is to release reports on manufacturing, net lending to individuals and final mortgage approvals.
In the U.S., the Federal Reserve is to publish the minutes of its most recent monetary policy committee meeting, which provide an in-depth insight into the country’s economic and financial outlook. The country is also to publish official data on factory orders, a leading indicator of industrial production.
Wednesday, January 5
The U.S. is to publish data on ADP non-farm payrolls, which leads the government-released employment data by two days. Later in the day, the country is to publish a report on service sector growth, a leading indicator of economic growth as well as a report on crude oil stockpiles.
The U.K. is to publish data on activity in the construction sector, an important indicator of economic health.
Thursday, January 6
The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health.
Meanwhile, the U.K. is to publish a report on activity in the services sector.
Friday, January 7
The U.S. is to round up the week with key data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of economic health. Later in the day, the country is to publish a report on consumer credit.