Investing.com - The pound rose to almost five-year highs against
the dollar on Friday, one day after Bank of England Governor Mark
Carney said U.K. interest rates could rise sooner than investors
GBP/USD was up 0.24% to 1.6968 late Friday, after rising as high
as 1.6990 earlier in the session, close to the five year high of
1.6898 set on May 6. The pair ended the week with gains of
Cable is likely to find support at 1.6920, Friday's low and
resistance at the 1.7000 level.
Sterling's gains came after Carney said Thursday that rapid
economic growth and the steep decline in the jobless rate mean that
the time to begin raising interest rates is growing closer.
"There's already great speculation about the exact timing of the
first rate hike and this decision is becoming more balanced. It
could happen sooner than markets currently expect," the BoE
Official data on Wednesday showed that the U.K. unemployment
rate fell to a five-year low of 6.6% in the three months to
Carney said the bank will monitor the labor market closely to
determine the right moment to start raising rates and reiterated
that when rates do start to rise they will do so only
The comments prompted investors to bring forward expectations
for a rate hike by the BoE. Some market watchers already expect the
central bank to start raising rates from their record low 0.5% late
In the U.S., data on Friday showed that U.S. consumer sentiment
unexpectedly deteriorated in June.
The preliminary reading of the University of Michigan's consumer
sentiment index for June came in at 81.2, down from 81.9 in May,
missing expectations for an uptick to 83.0.
Elsewhere, sterling rose to one-and-a-half year highs against
the broadly weaker euro on Friday, with EUR/GBP down 0.30% to
0.7981 at the close of trade, extending the week's losses to
In the week ahead, investors will be focusing on the outcome of
Wednesday's Federal Reserve policy meeting, while U.K. data on
retail sales and consumer prices will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the
Monday, June 16
The U.S. is to produce data on industrial production and
manufacturing activity in the Empire State.
Tuesday, June 17
The U.K. is to release data on consumer price inflation, which
accounts for a majority of overall inflation.
Later Tuesday, the U.S. is to produce data on housing starts,
building permits and consumer prices.
Wednesday, June 18
The BoE is to publish the minutes of its latest policy setting
Later Wednesday, the Federal Reserve is to announce its federal
funds rate and publish its rate statement. The announcement is to
be followed by a press conference with Fed Chair Janet Yellen.
Thursday, June 19
The U.K. is to release data on retail sales, the government
measure of consumer spending, which accounts for the majority of
overall economic activity.
The U.S. is to publish the weekly report on initial jobless
claims as well as a report on manufacturing activity in the
Friday, June 20
The U.K. is to round up the week with data on public sector net
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