Investing.com - The pound moved lower against the dollar on
Friday after data showed that the U.S. employment report for
February was stronger than forecast, bolstering the outlook for the
GBP/USD ended Friday's session down 0.15% to 1.6713. Earlier
Friday, the pair rose to highs of 1.6786, not far from the more
than four-year high of 1.6821 struck on February 17.
Cable was likely to find support at 1.6655, Wednesday's low and
resistance at 1.6821.
The U.S. economy added 175,000 jobs in February, the Labor
Department reported, well above expectations for 149,000 new jobs.
The unemployment rate ticked up to 6.7% from 6.6% in January, as
more people joined the workforce.
The jobs report eased concerns over soft U.S. employment and
other economic data seen in the past few months. The strong figure
indicated that the Federal Reserve is likely to continue to scale
back its stimulus program, which has weighed on the value of the
Demand for sterling continued to be underpinned after business
survey data earlier in the week indicated that the economic
recovery in the U.K. is continuing.
A report on Monday showed that the manufacturing activity
expanded in February, while the pace of jobs growth in the sector
reached a 33-month high. Meanwhile data on Wednesday showed that
activity in the U.K. service sector slowed slightly in February,
but growth remained robust.
The upbeat data reinforced the view that the Bank of England
will raise interest rates as soon as next year.
The BoE left U.K. interest rates unchanged at their record low
of 0.5% on Thursday, and also left its quantitative easing program
steady at 375 billion pounds.
Elsewhere, sterling fell to one-month lows against the broadly
stronger euro on Friday, with EUR/GBP ending Friday's session at
0.8301, up 0.26%.
The euro added to the previous session's strong gains after a
report from the European Central Bank showed that banks in the euro
area are set to repay a large portion of its emergency three-year
loans next week.
The common currency strengthened across the board on Thursday as
expectations for further monetary easing by the ECB dimmed after
the bank refrained from tightening policy, saying economic
conditions did not support such a move.
In the week ahead, U.S. data on retail sales and consumer
sentiment will be closely watched, while BoE Governor Mark Carney's
testimony on the inflation outlook will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
The guide skips Monday, as there are no relevant events on this
Tuesday, March 11
The U.K. is to publish data on manufacturing production.
Meanwhile, BoE Governor Mark Carney and several monetary policy
committee members are to testify on inflation and the economic
outlook before Parliament's Treasury Committee.
Wednesday, March 12
The U.K. is to produce data on the trade balance, the difference
in value between imports and exports.
Thursday, March 13
The U.S. is to release data on retail sales and import prices,
in addition to the weekly government report on initial jobless
Friday, March 14
The U.S. is to round up the week with data on producer price
inflation and preliminary data from the University of Michigan on
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