Shutterstock photo
Markets

Forex - GBP/USD weekly outlook: June 2 - 6

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - The dollar was lower against the pound on Friday, following the release of some disappointing U.S. economic data, but still notched up a weekly gain against sterling.

GBP/USD rose 0.22% to 1.6752 late Friday from lows of 1.6691 in the previous session, but still lost 0.72% for the week.

Cable was likely to find support at 1.6691, Thursday's low and a six-week low and resistance at 1.6815.

The dollar eased on Friday after data showed that U.S. consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.

Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.

The U.S. dollar index, which tracks the dollar against six other major currencies, traded softer on Friday and was last down 0.11% at 80.44. Earlier in the week, the index rose to highs of 80.63, the most since early April.

The pound came under pressure earlier in the week after reports indicated that the U.K. U.K. housing market is starting to slow, prompting investors to trim back expectations for a rate hike by the Bank of England later this year.

Sterling remained weaker even after BoE monetary policy committee member Martin Weale said Wednesday that a rise in the cost of borrowing should happen "sooner rather than later".

He said the bank should not wait too long to start raising interest rates as a delay would eventually mean sharper and more painful tightening of policy.

In the week ahead, investors will be looking to Friday's U.S. nonfarm payrolls report for May for further indications on the strength of the labor market, while U.K. data on manufacturing, services and construction sector growth 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.

Monday, June 2

The U.K. is to release what will be a closely watched manufacturing report, as well as data on net lending and mortgage approvals.

Later Monday, the Institute of Supply Management is to publish a report on U.S. manufacturing activity.

Tuesday, June 3

The U.K. is to publish data on construction sector activity, as well as private sector data on house price inflation.

The U.S. is to produce data on factory orders.

Wednesday, June 4

The U.K. is to produce data on service sector activity.

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 data on the trade balance.

Later Wednesday, the ISM is to publish a report on U.S. service sector activity.

Thursday, June 5

The BoE is to announce its benchmark interest rate.

The U.S. is to publish the weekly report on initial jobless claims.

Friday, June 6

The U.K. is to produce data on the trade balance and a report on consumer inflation expectations.

The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx