Investing.com – The pound ended the week lower against the U.S. dollar on Friday, trading within striking distance of an eight-month low amid speculation that the Bank of England may introduce fresh stimulus measures to shore up growth.
GBP/USD hit 1.5705 on Tuesday, the pair’s lowest since January 12; the pair subsequently consolidated at 1.5789 by close of trade on Friday, shedding 0.27% over the week.
Cable is likely to find support at 1.5707, Tuesday’s low and an eight-month low and resistance at 1.5867, Thursday’s high.
The pound came under pressure on Friday after BoE Deputy Governor Charlie Bean said in a newspaper interview that that more quantitative easing would be effective if more stimulus was needed.
On Thursday, the pound turned higher against the greenback, tracking the euro’s gains after the European Central Bank announced that it would provide additional dollar liquidity to euro area banks in a move coordinated with the Federal Reserve and other central banks.
The move eased concerns over funding shortages among European lenders, who have had difficulty borrowing dollars due to the region’s debt crisis and as a result have had to depend more heavily on the ECB for loans.
The greenback also came under pressure after government data showed that U.S. retail sales were unchanged in August, following a smaller-than-expected 0.3% gain in July, while a separate report showed that U.S. jobless claims rose more-than-expected.
Other reports showed that U.S. consumer prices rose slightly more than expected last month while manufacturing activity in New York contracted unexpectedly.
Earlier in the day, official data showed that U.K. retail sales declined in line with expectation in August, slipping 0.2%.
The report came after data on Wednesday showed that the number of people claiming unemployment benefits in the U.K. rose less-than-expected in August, but the number of people without work on the wider ILO measure showed its biggest rise in two years in the three months to July.
The soft data did little to quell speculation that the BoE may resort to fresh monetary stimulus measures to shore up growth after a recent string of weak economic data added to fears over the fragile U.K. economy.
In the week ahead, investors will be watching the outcome of the Federal Reserve’s extended policy setting meeting on Wednesday for any signs that the bank is looking at providing fresh monetary stimulus to support the economy.
Also Wednesday, the BoE is to publish the minutes of this month’s policy setting meeting.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, September 19
The U.K. is to publish industry data on house price inflation, an important indicator of economic strength. Later in the day, the BoE is to release its quarterly bulletin.
Tuesday, September 20
The U.S. is to publish government data on building permits, an excellent gauge of future construction activity, as well as a report on housing starts, a leading indicator of economic health.
Wednesday, September 21
In the U.K., the BoE is to publish the minutes of the most recent policy setting meeting. The minutes give investors an insight in to current economic conditions from the bank’s point of view. The bank is also to release data on public sector borrowing, a leading indicator of economic health.
Later Wednesday, the U.S. is to publish industry data on existing home sales as well as a government report on crude oil inventories. In addition, the Federal Reserve is to announce the federal funds rate. The banks’ rate statement will be closely watched by investors for any clues to the future direction of monetary policy.
Thursday, September 22
The U.S. is to publish its weekly report in initial jobless claims, a leading indicator of economic health.
Friday, September 23
The U.K. is to round up the week with an industry report on mortgage approvals, an important indicator of demand in the housing market.
GBP/USD hit 1.5705 on Tuesday, the pair’s lowest since January 12; the pair subsequently consolidated at 1.5789 by close of trade on Friday, shedding 0.27% over the week.
Cable is likely to find support at 1.5707, Tuesday’s low and an eight-month low and resistance at 1.5867, Thursday’s high.
The pound came under pressure on Friday after BoE Deputy Governor Charlie Bean said in a newspaper interview that that more quantitative easing would be effective if more stimulus was needed.
On Thursday, the pound turned higher against the greenback, tracking the euro’s gains after the European Central Bank announced that it would provide additional dollar liquidity to euro area banks in a move coordinated with the Federal Reserve and other central banks.
The move eased concerns over funding shortages among European lenders, who have had difficulty borrowing dollars due to the region’s debt crisis and as a result have had to depend more heavily on the ECB for loans.
The greenback also came under pressure after government data showed that U.S. retail sales were unchanged in August, following a smaller-than-expected 0.3% gain in July, while a separate report showed that U.S. jobless claims rose more-than-expected.
Other reports showed that U.S. consumer prices rose slightly more than expected last month while manufacturing activity in New York contracted unexpectedly.
Earlier in the day, official data showed that U.K. retail sales declined in line with expectation in August, slipping 0.2%.
The report came after data on Wednesday showed that the number of people claiming unemployment benefits in the U.K. rose less-than-expected in August, but the number of people without work on the wider ILO measure showed its biggest rise in two years in the three months to July.
The soft data did little to quell speculation that the BoE may resort to fresh monetary stimulus measures to shore up growth after a recent string of weak economic data added to fears over the fragile U.K. economy.
In the week ahead, investors will be watching the outcome of the Federal Reserve’s extended policy setting meeting on Wednesday for any signs that the bank is looking at providing fresh monetary stimulus to support the economy.
Also Wednesday, the BoE is to publish the minutes of this month’s policy setting meeting.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, September 19
The U.K. is to publish industry data on house price inflation, an important indicator of economic strength. Later in the day, the BoE is to release its quarterly bulletin.
Tuesday, September 20
The U.S. is to publish government data on building permits, an excellent gauge of future construction activity, as well as a report on housing starts, a leading indicator of economic health.
Wednesday, September 21
In the U.K., the BoE is to publish the minutes of the most recent policy setting meeting. The minutes give investors an insight in to current economic conditions from the bank’s point of view. The bank is also to release data on public sector borrowing, a leading indicator of economic health.
Later Wednesday, the U.S. is to publish industry data on existing home sales as well as a government report on crude oil inventories. In addition, the Federal Reserve is to announce the federal funds rate. The banks’ rate statement will be closely watched by investors for any clues to the future direction of monetary policy.
Thursday, September 22
The U.S. is to publish its weekly report in initial jobless claims, a leading indicator of economic health.
Friday, September 23
The U.K. is to round up the week with an industry report on mortgage approvals, an important indicator of demand in the housing market.