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Forex – GBP/USD weekly outlook: Feb. 15-19

Published 02/14/2010, 06:04 AM
GBP/USD
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Investing.com – During a week of volatile trade, Sterling rebounded toward the end of last week from the 8-month low it hit against the dollar on Monday. 

Trade closed on Friday after GBP/USD hit 1.5697, shedding 0.02%. Cable is likely to find resistance at 1.5918, the high of Feb. 4, and support at 1.5535, Monday's low. 

Next week will see the release of key inflation data in the U.S., with the publication of the country's CPI and PPI. The U.S. will also report on changes in housing starts, building permits and industrial activity. 

Britain, meanwhile, will release data on unemployment, retail sales and its CPI. 

Ahead of the coming week, Investing.com has compiled a list of key economic events likely to affect the pair.

Monday, Feb. 15 

Britain will begin the week with the release of the Rightmove House Price Index, the country's earliest report on housing inflation. 

The U.S. will be closed for trade on Monday as it marks Presidents Day. 

Tuesday, Feb. 16

Britain will release its Consumer Price Index, which has risen sharply in recent months. The measure is expected to climb from 2.9% to 3.6%. 

Also Tuesday, the U.S. will release data on long-term international security purchases, in its monthly TIC report, and on the number of new homes on which construction was begun during the previous month, in its Housing Starts report. 

Wednesday, Feb. 17

Britain will release key unemployment data on the claimant count change, the first indication of the country's employment situation since it comes a month before the unemployment rate is published. The bank of England will subsequently publish the minutes of its Monetary Policy Committee's meeting.

Later Wednesday, the U.S. will announce the number of new building permits issued during the previous month, an important gauge of future construction activity.

The U.S. Federal Reserve will later release the minutes of its Federal Open Market Committee's meeting. Traders will await this to see if this signals a future interest rate hike. The Fed will also release key monthly data on industrial production, a good indicator of the state of the manufacturing sector.

Thursday, Feb. 18

The U.S. will release its PPI and data on initial jobless claims. The Federal Reserve Bank of Philadelphia will release its Manufacturing Index, a leading indicator of economic health.

The Confederation of British Industry will release the findings of its Industrial Trends Orders survey, which measures the economic expectations of the manufacturing executives in the United Kingdom.

Friday, Feb. 19

Britain will release monthly data on retail sales, the primary gauge of consumer spending.

The U.S. will close the week with the release of its monthly core CPI, which is expected to rise from 0.1% to 0.2%.

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