24 Jul 2015
GBP/USD ends week lower ahead of GDP and FOMC
FXStreet (Córdoba) - The pound ended the week lower versus the US dollar and was the worst among European currencies, erasing most of the previous week gains.
GBP/USD is about to close trading around 1.5500 after falling 200 pips from Thursday’s highs located at 1.5669. On Friday it bottomed at 1.5465, 1-week low, but then managed to rise modestly toward 1.5500.
Could GDP boost rate hike expectation at the BoE?
The pair moved all week inside the range of the previous week unable to break above 1.5670 while to the downside, the area around 11.5500 offered support. Cable ended with a bearish tone amid a stronger US dollar in the market.
Next week the key event will be the FOMC meeting where the US central bank could signal a rate hike for September. Regarding economic data the more relevant reports will be the first GDP reading from the second quarter in the US (Thursday) and in the United Kingdom (Tuesday). The TD Securities Team expect a reading of +0.6% in the UK: “Overall, this suggests the Q1 deceleration was indeed temporary and Q2 is back to trend—if not slightly above—what should be trend going forward. This leaves ample scope for the MPC to be more secure in hiking rates in February as we expect.”
GBP/USD is about to close trading around 1.5500 after falling 200 pips from Thursday’s highs located at 1.5669. On Friday it bottomed at 1.5465, 1-week low, but then managed to rise modestly toward 1.5500.
Could GDP boost rate hike expectation at the BoE?
The pair moved all week inside the range of the previous week unable to break above 1.5670 while to the downside, the area around 11.5500 offered support. Cable ended with a bearish tone amid a stronger US dollar in the market.
Next week the key event will be the FOMC meeting where the US central bank could signal a rate hike for September. Regarding economic data the more relevant reports will be the first GDP reading from the second quarter in the US (Thursday) and in the United Kingdom (Tuesday). The TD Securities Team expect a reading of +0.6% in the UK: “Overall, this suggests the Q1 deceleration was indeed temporary and Q2 is back to trend—if not slightly above—what should be trend going forward. This leaves ample scope for the MPC to be more secure in hiking rates in February as we expect.”