Investing.com - The pound was little changed against the dollar late Friday after data showed that U.S. consumer sentiment rose unexpectedly in October and following dovish remarks by a bank of England official earlier in the day.
GBP/USD was trading at 1.6092 late Friday, off session highs of 1.6125.
Cable is likely to find support at around 1.5940 and resistance at the 1.6180 level.
The dollar was boosted after a report showed that the University of Michigan’s consumer sentiment index unexpectedly rose to 86.4 in October, the most since July 2007.
Another report showed that housing starts rose more than expected last month, bolstering the outlook for the sector.
The data reinforced expectations that the Federal Reserve will raise interest rates in the second half of 2015.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.33% to 85.31, but still ended the week lower, its second consecutive weekly decline.
Earlier Friday, BoE Chief Economist Andy Haldane said that rates could remain lower for longer and warned that economic conditions have worsened.
Haldane pointed to slowing global growth, heightened geopolitical and financial risks and the subdued inflation outlook due to slow U.K. wage growth and falling commodity prices worldwide.
Sterling slumped to 11-month lows against the dollar earlier in the week after data showed that the annual rate of U.K. inflation slowed to 1.2% in September, down from 1.5% in August.
The data added to the view that the BoE is likely to keep rates on hold at record lows for longer.
Elsewhere, sterling was higher against the euro on Friday, with EUR/GBP down 0.41% to 0.7928.
In the week ahead, the U.S. is to release data on consumer inflation, as well as reports on both existing and new home sales. The BoE is to publish it latest meeting minutes, while Friday’s first look at third quarter growth will be highly anticipated.
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 Monday as there are no relevant events on this day.
Tuesday, October 21
The U.K. is to produce data on public sector borrowing.
The U.S. is to release private sector data on existing home sales.
Wednesday, October 22
The BoE is to release the minutes of its latest policy meeting.
The U.S. is to produce data on consumer price inflation, which accounts for the majority of overall inflation.
Thursday, October 23
The U.K. is to report on retail sales and also release private sector data on mortgage approvals and industrial order expectations.
The U.S. is to publish its weekly report on initial jobless claims.
Friday, October 24
The U.K. is to release preliminary data on third quarter economic growth.
The U.S. is to round up the week with a report on new home sales.