Forex - GBP/USD weekly outlook: April 29 - May 3

A A A - The pound hit fresh two-month highs against the dollar on Friday, after official data showed that the U.S. economy grew less-than-expected in the first quarter.

GBP/USD hit session highs of 1.5498, the pair's highest since February 19, before settling at 1.5476, 0.28% higher for the day and up 1.16% for the week.

Cable is likely to find support at 1.5417, Friday's low and resistance at 1.5549, the high of February 15.

The Commerce Department said U.S. gross domestic product expanded by 2.5% in the three months to March, missing expectations for growth of 3.0%.

The disappointing data added to expectations that the Federal Reserve will continue its monetary easing program, amid lingering concerns over the outlook for the U.S. economic recovery.

Sterling rallied more than 1.0% against the dollar on Thursday after data showed that the U.K. economy returned to growth in the first quarter, avoiding a triple-dip recession.

The Office for National Statistics said U.K. gross domestic product expanded by a seasonally adjusted 0.3% in the three months to March, above expectations for a 0.1% gain and was 0.6% higher year-on-year.

U.K. Chancellor George Osborne welcomed the report, saying the positive data was an encouraging sign that the economy is healing.

The euro fell to three-month lows against sterling on Friday, with EUR/GBP slipping 0.12% to settle at 0.8420, 1.39% lower for the week.

The single currency looked likely to remain under pressure ahead of the upcoming European Central Bank policy meeting on Thursday as speculation over a rate cut weighed.

In the week ahead, investors will be awaiting the outcome of Wednesday's Federal Reserve policy meeting and Friday's closely watched report on U.S. nonfarm payrolls, as well as U.K. data on manufacturing and service sector activity.

Ahead of the coming week, has compiled a list of these and other significant events likely to affect the markets.

Monday, April 29

The U.S. is to produce official data on personal income and expenditure, as well as private sector data on pending home sales, a leading economic indicator.

Tuesday, April 30

The U.K. is to publish official data on net lending to individuals and mortgage approvals.

Later Tuesday, the U.S. is to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation.

Wednesday, May 1

The U.K. is to release data on manufacturing activity, a leading indicator of economic strength.

The U.S. is to release the ADP nonfarm payrolls report on private sector job creation as well as government data on crude oil stockpiles. In addition, the Institute of Supply Management is release data on U.S. manufacturing activity, a leading economic indicator.

In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement is to be accompanied by the bank's monetary policy statement, which contains valuable insights into economic conditions from the bank's perspective.

Thursday, May 2

The U.K. is to release data on construction sector activity, a leading indicator of economic health.

The U.S. is to publish the weekly government report on initial jobless claims as well as official data on the trade balance.

Friday, May 3

The U.K. is to release data on service sector activity, a leading economic indicator.

The U.S. is to round up the week with government data on nonfarm payrolls and the unemployment rate as well as data on average hourly earnings and factory orders. In addition, the ISM is release data on U.S. service sector activity, a leading economic indicator. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Forex and Currencies

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