Investing.com - " The pound posted a second week of gains
against the dollar on Friday after data showed that the U.K.
economy grew at the fastest pace in three years in the third
quarter, but gains were limited as sterling lost momentum following
a rally in the last three months.
GBP/USD ended Friday's session at 1.6166, 0.21% lower for the day,
after briefly touching session highs of 1.6247. For the week, the
pair gained 0.22%.
Cable is likely to find support at 1.6100 and resistance at 1.6255,
the high of October 23 and an almost nine-month high.
Sterling touched session highs after the Office of National
Statistics said the U.K. economy expanded by 0.8% in the three
months to September, in line with forecasts and grew 1.5% on a
But the pound came off session highs amid concerns that markets
have been premature in pricing in possible rate hikes by the Bank
In August the BoE said it will not consider lifting rates from
their current 0.5% low until the U.K. unemployment rate has dropped
to 7%, which it estimates could take three years.
Wednesday's minutes of the BoE's October meeting said the U.K.
unemployment rate appears to be falling at a faster than expected
rate as the "robust" recovery gains traction.
In the U.S. data on Friday showed that core durable goods orders
unexpectedly fell 0.1% in September, the third consecutively
decline. A separate report showed that the University of Michigan
U.S. consumer sentiment index was revised down to a 10 month low in
The data cemented expectations that the Federal Reserve will
maintain the current pace of its asset purchase program into early
The Fed surprised investors when it unexpectedly refrained from
scaling back asset purchases at its policy setting meeting in
September, saying it wanted more evidence of an economic recovery.
In the week ahead, investors will be focused on the outcome of
Wednesday's Federal Reserve policy setting meeting. The central
bank is expected to keep its USD85 billion-a-month asset purchase
program on track. Thursday's U.K. manufacturing data will also be
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
Monday, October 28
The U.K. is to release private sector data on retail sales, an
important economic indicator.
The U.S. is to produce reports on industrial production and the
capacity utilization rate, as well as private sector data on
pending home sales.
Tuesday, October 29
The U.K. is to publish data on net lending to individuals.
The U.S. is to produce data on retail sales, the government measure
of consumer spending, which accounts for the majority of overall
economic activity. The U.S. is also to publish data on producer
price inflation and a report on consumer confidence, a leading
Wednesday, October 30
The U.S. is to release the ADP report on nonfarm payrolls and
official data on consumer price inflation.
Later Wednesday, the Federal Reserve is to announce its federal
funds rate and publish its rate statement. The statement is to be
followed by a closely watched press conference with Chairman Ben
Thursday, October 31
The U.S. is to release data on initial jobless claims and a report
on manufacturing activity in the Chicago region.
Friday, November 1
The U.K. is to publish data on manufacturing activity, a leading
The U.S. is to round up the week with a report from the Institute
of Supply Management on manufacturing activity.
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