Forex - GBP/USD weekly outlook: April 15 - 19

Investing.com - The pound was lower against the dollar on Friday, erasing most of the previous day’s gains as weak U.S. economic data reinforced concerns over the outlook for global growth.

GBP/USD settled at session lows of 1.5342 Friday, down 0.29% for the day but still up 0.51% for the week.

Cable is likely to find support at 1.5249, the low of April 9 and resistance at 1.5410, Thursday’s high and a seven-week high.

Sterling fell against the dollar after official data showed that U.S. retail sales fell 0.4% in March, the largest decline in nine months and missing expectations for a 0.1% increase.

A separate report showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to 72.3 in April, the lowest level since July, from a final reading of 78.6 in March.

Another report showed that U.S. producer price inflation declined 0.6% in March, more than the 0.2% drop expected.

Earlier in the week the minutes of the Federal Reserve’s March meeting showed that policymakers are still divided about over when to wind up the bank’s easing program, but the meeting was held before data showed that the U.S. economy added far fewer than expected jobs in March.

The pound continued to be indirectly supported by the Bank of Japan’s massive stimulus program, while better-than-expected U.K. factory data fuelled hopes that the economy could avoid a triple-dip recession in the first quarter.

Data on Tuesday showed that U.K. manufacturing production rose by 0.8% in February, beating expectations for a 0.3% increase, while industrial production rose by 1%, compared to expectations for a 0.3% increase.

In the coming week, the U.S. is to publish a broad range of economic data, with reports on manufacturing activity, the housing sector and inflation due for release. Investors will be closely watching this data as they attempt to gauge the strength of the U.S. recovery.

In addition, markets will be looking ahead to U.K. data on inflation, retail sales employment and the minutes of the Bank of England’s most recent policy meeting.

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 Friday as there are no relevant events on this day.

Monday, April 15

The U.S. is to publish data on manufacturing activity in New York state, a leading economic indicator.

Tuesday, April 16

The U.K. is to produce official data on consumer price inflation, which accounts for the majority of overall inflation, as well as data on producer and retail price inflation.

The U.S. is to publish official data on building permits, an excellent indicator of future construction activity and on housing starts. The U.S. is also to release data on consumer inflation, industrial production and the capacity utilization rate.

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Wednesday, April 17

The U.K. is to publish official data on the change in the number of people claiming unemployment benefits and the unemployment rate. Meanwhile, the Bank of England is to publish its monetary policy meeting minutes.

Thursday, April 18

The U.K. is to publish official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.

The U.S. is to release the weekly government report on initial jobless claims as well as data on manufacturing activity in Philadelphia.