GBP/USD rising for the second week in a row despite Friday’s decline
|The pound is among the top performers for the second week in a row. GBP/USD is about to post the highest weekly close for the year despite pulling back on Thursday's and Friday.
Cable started the week near the 1.4500 handle, it bottomed at 1.4445 and then rose to 1.4740 before pulling back toward 1.4620. Near the end of Friday’s American session is moving to the 1.4600 area after the US dollar receive a boost from Janet Yallen. Fed’s charwoman said that it is appropriate to raise rates in the coming months.
A busy week
Next week the main economic report in the US will be the NFP. “We think that is likely that payroll growth will have rebounded in May and forecast a 195k outturn. That pace of employment growth should be enough to further push down the unemployment rate and we forecast a decline to 4.9%”, said analyst from Lloyds.
In the United Kingdom, economic releases include May PMI’s. Lloyds economists expect an improvement in the PMI Manufacturing index (to 49.6) and in the Service index (52.5). Also referendum polls ahead of the June 23 referendum will be watched closely.
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