Investing.com - The pound edged down to one month lows against
the broadly stronger dollar on Friday as upbeat U.S. data and
heightened geopolitical tensions underpinned demand for the
GBP/USD edged down 0.06% to 1.6975 late Friday, the lowest since
June 25. For the week, the pair lost 0.66%.
Cable is likely to find support at around the 1.6925 level and
resistance at 1.7050.
In recent sessions, sterling has backed off the almost six-year
highs of 1.7190 set on July 15 as expectations for a rate hike by
the Bank of England before then end of the year waned.
The greenback was boosted as better than expected data on
durable goods orders for June added to signs that the U.S. economy
The Commerce Department reported a rise of 0.7% in orders of
long lasting goods such as machinery and electronic products,
compared to forecasts of 0.5%. Durable goods orders fell by 1.0% in
Demand for the dollar has been underpinned since Federal Reserve
Chair Janet Yellen indicated earlier this month that U.S. interest
rates could rise sooner if the recovery in the labor market
Investor demand for safe haven assets was also boosted by
geopolitical concerns as tensions between the West and Russia
remained high. The European Union imposed a fresh round of
sanctions against Russia on Friday, in protest over Russia's
involvement in the crisis in east Ukraine.
Earlier Friday, official data confirmed that the U.K. economy
grew 0.8% in the second quarter of 2014 and expanded by 3.1% on a
Elsewhere, sterling gained ground against the broadly weaker
euro, with EUR/GBP sliding 0.18% to 0.7910, not far from
Wednesday's 22-month low of 0.7873.
The single currency weakened broadly on Friday as disappointing
German economic data underlined concerns over the diverging
monetary policy path between the European Central Bank and other
In the week ahead investors will be focusing on U.S. data on
second-quarter gross domestic product and an interest rate decision
by the Federal Reserve on Wednesday, while Friday's nonfarm
payrolls report for July will also be closely watched.
The U.K. is to release data on manufacturing sector activity on
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the
Monday, July 28
The U.S. is to release data on pending home sales.
Tuesday, July 29
The U.K. is to release data on net lending.
Later Tuesday, the U.S. is to publish reports on house price
inflation and consumer confidence.
Wednesday, July 30
The U.S. is to release the ADP report on private sector job
creation, which leads the government's nonfarm payrolls report by
two days. The U.S. is also to publish revised data on second
Later Wednesday, the Federal Reserve is to announce its federal
funds rate and publish its rate statement.
Thursday, July 31
The U.K. is to produce private sector data on house price
The U.S. is to release the weekly report on initial jobless
claims, as well as data on manufacturing activity in the Chicago
Friday, August 1
The U.K. is to release data on manufacturing activity.
The U.S. is to round up the week with what will be closely
watched government data on nonfarm payrolls and the unemployment
rate, while the Institute of Supply Management is to release data
on manufacturing activity.
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