Investing.com – Last week saw the pound rally against the U.S. dollar, closing the week at a 6-week high as concerns over the Bank of England's economic outlook were overshadowed by Friday's soft U.S. economic data.
GBP/USD hit 1.5842 on Friday, the pair's highest since August 11; the pair subsequently consolidated at 1.5817 by close of trade, having gained 1.03% over the week.
The pair is likely to find support at 1.5610, last Thursday's low and resistance at 1.5995, the high of August 9.
On Wednesday, the minutes of the Bank of England's September meeting said that policy makers saw a “reduction in growth prospects” for the second half of the year and added that that the risks to the U.K. inflation outlook were “substantial” in both directions.
“Members stood ready to respond in either direction as the balance of risks evolved,” the minutes said.
On Friday, official data showed that U.S. durable goods orders declined in line with expectations in August, while new home sales were flat over the month.
The data weakened the U.S. dollar amid concerns that the Federal Reserve may begin another round of asset purchases, known as quantitative easing to bolster flagging U.S. growth and reduce the risk of the U.S. falling into deflation.
Next week, the U.S. is to release key weekly data on initial jobless claims as well as data on unemployment, consumer confidence and manufacturing. The country is also to release final GDP data while Federal Reserve chief Ben Bernanke is to speak at two public engagements.
Meanwhile, Britain is to release key reports on its current account and manufacturing activity. In addition, the country is to release data on consumer confidence and house prices.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect GBP/USD. The guide begins on Tuesday, as there are no such events on Monday.
Tuesday, September 28
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release industry data on house prices as well as a report on manufacturing activity in the Richmond area.
Also Tuesday, the U.K. is to release final data on GDP, the leading indicator of economic growth, as well as data on the country's current account and industry data on retail sales.
Wednesday, September 29
In the U.S., President of the Federal Reserve Bank of Boston Eric Rosengren is due to speak on the nation’s economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy. The country is also to produce data on crude oil inventories.
The U.K. is to produce data on net lending to individuals as well as data on mortgage approvals, a leading indicator of health in the housing industry. Later in the day, market research group Gfk will publish a report on U.K. consumer confidence.
Thursday, September 30
The U.S. is to release final data on its gross domestic product, the leading indicator of economic growth. The country is also due to produce key data on initial jobless claims and manufacturing activity in Chicago.
Later in the day, Federal Reserve Chairmen Ben Bernanke is expected to deliver a speech on the U.S. economy. His comments will be closely scrutinized for any clues to the future direction of U.S. monetary policy.
The U.K. is to produce industry data on house prices, while Bank of England Monetary Policy Committee members Paul Tucker and Paul Fisher are both expected to deliver speeches on the country’s economy. Their comments will be closely watched for any clues to the future direction of British monetary policy.
Friday, October 1
The U.S. is to round up the week by producing key data on personal spending and income, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations. The country is also to release official data on manufacturing conditions, total vehicle sales and construction spending.
Meanwhile, the U.K. is due to publish official data on manufacturing activity, as well as a report on house prices, a leading indicator of health in the housing sector.
GBP/USD hit 1.5842 on Friday, the pair's highest since August 11; the pair subsequently consolidated at 1.5817 by close of trade, having gained 1.03% over the week.
The pair is likely to find support at 1.5610, last Thursday's low and resistance at 1.5995, the high of August 9.
On Wednesday, the minutes of the Bank of England's September meeting said that policy makers saw a “reduction in growth prospects” for the second half of the year and added that that the risks to the U.K. inflation outlook were “substantial” in both directions.
“Members stood ready to respond in either direction as the balance of risks evolved,” the minutes said.
On Friday, official data showed that U.S. durable goods orders declined in line with expectations in August, while new home sales were flat over the month.
The data weakened the U.S. dollar amid concerns that the Federal Reserve may begin another round of asset purchases, known as quantitative easing to bolster flagging U.S. growth and reduce the risk of the U.S. falling into deflation.
Next week, the U.S. is to release key weekly data on initial jobless claims as well as data on unemployment, consumer confidence and manufacturing. The country is also to release final GDP data while Federal Reserve chief Ben Bernanke is to speak at two public engagements.
Meanwhile, Britain is to release key reports on its current account and manufacturing activity. In addition, the country is to release data on consumer confidence and house prices.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect GBP/USD. The guide begins on Tuesday, as there are no such events on Monday.
Tuesday, September 28
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release industry data on house prices as well as a report on manufacturing activity in the Richmond area.
Also Tuesday, the U.K. is to release final data on GDP, the leading indicator of economic growth, as well as data on the country's current account and industry data on retail sales.
Wednesday, September 29
In the U.S., President of the Federal Reserve Bank of Boston Eric Rosengren is due to speak on the nation’s economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy. The country is also to produce data on crude oil inventories.
The U.K. is to produce data on net lending to individuals as well as data on mortgage approvals, a leading indicator of health in the housing industry. Later in the day, market research group Gfk will publish a report on U.K. consumer confidence.
Thursday, September 30
The U.S. is to release final data on its gross domestic product, the leading indicator of economic growth. The country is also due to produce key data on initial jobless claims and manufacturing activity in Chicago.
Later in the day, Federal Reserve Chairmen Ben Bernanke is expected to deliver a speech on the U.S. economy. His comments will be closely scrutinized for any clues to the future direction of U.S. monetary policy.
The U.K. is to produce industry data on house prices, while Bank of England Monetary Policy Committee members Paul Tucker and Paul Fisher are both expected to deliver speeches on the country’s economy. Their comments will be closely watched for any clues to the future direction of British monetary policy.
Friday, October 1
The U.S. is to round up the week by producing key data on personal spending and income, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations. The country is also to release official data on manufacturing conditions, total vehicle sales and construction spending.
Meanwhile, the U.K. is due to publish official data on manufacturing activity, as well as a report on house prices, a leading indicator of health in the housing sector.