Investing.com – Last week saw the pound surge to close at a 2-week high against the U.S. dollar after official data showed that U.K. GDP jumped unexpectedly in the third quarter and as uncertainty over easing continued to weigh on the U.S. dollar.
GBP/USD hit 1.5895 on Tuesday, the pair’s highest since October 19; the pair subsequently consolidated at 1.6039 by close of trade on Friday, jumping 2.24% over the week.
Cable is likely to find support at 1.5761, last Thursday’s low and short-term resistance at 1.6104, the high of October 15 and a 9-month high.
On Tuesday, the U.K. Office for National Statistics said that GDP increased by a seasonally adjusted 0.8% in the third quarter, after rising by a revised 1.2% in the preceding quarter. Analysts had expected GDP to rise 0.4% in the third quarter.
Meanwhile, official data released Friday seemed to underline expectations that the Federal Reserve will intervene to support the U.S. economic recovery.
U.S. GDP rose at an annual rate of 2.0% in the third quarter, in line with expectations, after rising 1.7% in the second quarter. However the real final sales component - the measure of demand in the U.S. - rose by only 0.6%. That was down from 0.9% in the second quarter and 1.1% in the first quarter.
Next week’s economic calendar contains events capable of shaping currency markets for several weeks to come, with the Fed's November 2-3 FOMC meeting and U.S. nonfarm payrolls. In addition, the U.S. is to release key weekly data on initial jobless claims as well as data on pending home sales and reports on manufacturing and service sector growth.
In the U.K., the Bank of England is to announce its benchmark interest rate. The country is also to produce industry data on house prices as well as reports on manufacturing and service sector growth and inflation.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 1
The U.K. is to begin the week with data on manufacturing sector growth, a leading indicator of economic health.
Later in the day, the U.S. is to publish official data on personal income and personal spending, which accounts for the majority of overall economic activity as well as data on manufacturing.
Tuesday, November 2
The U.K. is to publish data on construction sector growth, a leading indicator of economic health.
Wednesday, November 3
The U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish industry data on service sector growth. In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement will be followed by the heavily anticipated FOMC rate statement.
Also Wednesday, the U.K. is to publish its services PMI, an important indicator of economic growth.
Thursday, November 4
In the U.K. the Bank of England is to announce its benchmark interest rate. The announcement will be followed up with keenly anticipated rate statement.
Also Thursday, the U.S. is to publish key weekly data on initial jobless claims, the nation’s earliest economic data and a leading indicator of overall economic health. The country is also to publish quarterly data on non-farm productivity and labor costs, both leading inflationary indicators.
Friday, November 5
The U.S. is to round up the week with data on non-farm employment change and a report on the country's unemployment rate. The country will also release official data on pending home sales, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Meanwhile, the U.K. is to release official data on producer price inflation, an important indicator of economic growth.
GBP/USD hit 1.5895 on Tuesday, the pair’s highest since October 19; the pair subsequently consolidated at 1.6039 by close of trade on Friday, jumping 2.24% over the week.
Cable is likely to find support at 1.5761, last Thursday’s low and short-term resistance at 1.6104, the high of October 15 and a 9-month high.
On Tuesday, the U.K. Office for National Statistics said that GDP increased by a seasonally adjusted 0.8% in the third quarter, after rising by a revised 1.2% in the preceding quarter. Analysts had expected GDP to rise 0.4% in the third quarter.
Meanwhile, official data released Friday seemed to underline expectations that the Federal Reserve will intervene to support the U.S. economic recovery.
U.S. GDP rose at an annual rate of 2.0% in the third quarter, in line with expectations, after rising 1.7% in the second quarter. However the real final sales component - the measure of demand in the U.S. - rose by only 0.6%. That was down from 0.9% in the second quarter and 1.1% in the first quarter.
Next week’s economic calendar contains events capable of shaping currency markets for several weeks to come, with the Fed's November 2-3 FOMC meeting and U.S. nonfarm payrolls. In addition, the U.S. is to release key weekly data on initial jobless claims as well as data on pending home sales and reports on manufacturing and service sector growth.
In the U.K., the Bank of England is to announce its benchmark interest rate. The country is also to produce industry data on house prices as well as reports on manufacturing and service sector growth and inflation.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 1
The U.K. is to begin the week with data on manufacturing sector growth, a leading indicator of economic health.
Later in the day, the U.S. is to publish official data on personal income and personal spending, which accounts for the majority of overall economic activity as well as data on manufacturing.
Tuesday, November 2
The U.K. is to publish data on construction sector growth, a leading indicator of economic health.
Wednesday, November 3
The U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish industry data on service sector growth. In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement will be followed by the heavily anticipated FOMC rate statement.
Also Wednesday, the U.K. is to publish its services PMI, an important indicator of economic growth.
Thursday, November 4
In the U.K. the Bank of England is to announce its benchmark interest rate. The announcement will be followed up with keenly anticipated rate statement.
Also Thursday, the U.S. is to publish key weekly data on initial jobless claims, the nation’s earliest economic data and a leading indicator of overall economic health. The country is also to publish quarterly data on non-farm productivity and labor costs, both leading inflationary indicators.
Friday, November 5
The U.S. is to round up the week with data on non-farm employment change and a report on the country's unemployment rate. The country will also release official data on pending home sales, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Meanwhile, the U.K. is to release official data on producer price inflation, an important indicator of economic growth.