Investing.com - 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
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
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, Investing.com 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
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
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.
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