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Forex - GBP/USD weeky outlook: July 29 - August 2

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Investing.com - The pound held steady against the dollar in subdued trade on Friday, as investors remained cautious after the release of mixed U.S. data and ahead of the Federal Reserve's upcoming policy meeting, amid uncertainty over the future of the U.S. central bank's stimulus program.

GBP/USD hit session lows of 1.5356, before settling at 1.5386, 0.03% lower for the day and up 0.13% for the week.

Cable is likely to find support at 1.5290, Wednesday's low and resistance at 1.5478, the high of June 25.

Mixed U.S. data on initial jobless claims and durable goods orders on Thursday added to uncertainty over whether the Fed will soon begin to scale back its bond-buying program.

The Labor Department said the number of individuals filing for initial jobless benefits last week increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000.

Separately, the Commerce Department said orders for long lasting manufactured goods rose by a seasonally adjusted 4.2% in June, compared to expectations for an increase of 1.3%.

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, compared to expectations for a 0.5% increase.

Sterling gained ground on Thursday after the Office of National Statistics said the U.K. economy expanded by 1.4% on a year-over-year basis in the second quarter, in line with expectations.

The U.K. economy grew by 0.3% year-on-year in the first quarter.The U.K. economy expanded 0.6% quarter on quarter, after a 0.3% expansion in the first quarter.

The ONS said the service sector expanded by 0.6%, the manufacturing sector grew 0.4% and the construction sector grew by 0.9%.

In the week ahead, the Federal Reserve and the Bank of England are to publish their monthly policy statements. The U.K. is to release data on manufacturing activity.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, July 29

The U.K. is to release official data on net lending to individuals, which is the change in the total value of new credit issued to consumers, followed by industry data on realized sales.

Later in the day, the U.S. is to produce industry data on pending home sales, a leading indicator of economic health.

Tuesday, July 30

The U.S. is to release a report on the Standard & Poor's/Case-Shiller Composite-20 house price index, followed by the Conference Board's report on consumer confidence.

Wednesday, July 31

The U.S. is also to produce GDP data, as well as a report on non-farm employment change and data on manufacturing activity in Chicago.

Separately, the Federal Reserve is to release its monthly monetary policy statement, which will be closely watched for indications on the future of the central bank's stimulus program.

Thursday, August 1

The U.K. is to produce a report on manufacturing activity, while the Bank of England will also publish its monetary policy statement.

The U.S. is to release official data on weekly unemployment claims, followed by a report by the Institute of Supply Management on manufacturing activity.

Friday, August 2

The U.K. is to produce industry data on house price inflation, as well as a report on construction activity.

The U.S. is to round up the week with official data on non-farm employmet change, the unemployment rate, average hourly earnings and personal spending, as well as a report on factory orders.

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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.

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