Investing.com - The pound moved higher against the softer dollar on Friday after lackluster U.S. economic reports and cautious remarks on interest rates by Federal Reserve Chair Janet Yellen.
GBP/USD was up 0.29% to 1.4893 in late trade.
Sentiment on the dollar was hit after data on Friday showed that the U.S. economy grew slightly less than forecast in the fourth quarter and another report showing that consumer sentiment deteriorated this month.
The Commerce Department reported that the U.S. economy expanded at an annual rate of 2.2% in the fourth quarter, unchanged from the preliminary estimate and below economists’ forecasts for an upward revision to 2.4%.
Another report showed that the final reading of the University of Michigan’s consumer sentiment index ticked down to 93.0 this month from a final reading of 95.4 in February.
The dollar remained subdued after Fed Chair Janet Yellen struck a cautious note on interest rates. In a speech on Friday, the Fed chief said a rate hike may be warranted later this year, but added that weakening inflation pressures could force the Fed to delay.
The speech echoed the Fed’s latest policy statement, released on March 18, which indicated that it may raise interest rates more gradually than markets had expected.
Sterling received a boost after Bank of England Governor Mark Carney said the next move in interest rates is going to be up. The remarks came during a panel discussion at a Bundesbank conference in Frankfurt.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended the week down 0.66%, the second consecutive weekly decline.
In the week ahead, investors will be focusing the U.S. employment report for February, due out on Friday and Monday’s data on personal spending for further indications on the path of monetary policy.
U.K. data on manufacturing and construction sector activity will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 30
The U.K. is to produce data on net lending.
The U.S. is to release reports on personal spending and pending home sales.
Tuesday, March 31
The U.K. is to produce data on the current account.
The U.S. is to release data on consumer confidence.
Wednesday, April 1
The U.K. is to release survey data on manufacturing activity.
The U.S. is to release the ADP nonfarm payrolls report, which outlines private sector jobs growth, while the Institute of Supply Management is to release data on manufacturing activity.
Thursday, April 2
The U.K. is to release survey data on construction activity.
The U.S. is to release data on the trade balance, initial jobless claims and factory orders.
Friday, April 3
Markets in Australia, New Zealand, Europe, the U.K., U.S. and Canada will be closed for the Good Friday holiday.
The U.S. is to round up the week with what will be a closely watched government report on non-farm payrolls, the unemployment rate and average earnings.