Investing.com - The pound ended slightly lower against the dollar on Friday after a solid U.S. jobs report for July reinforced expectations for higher interest rates.
GBP/USD was off 0.15% at 1.5487 in late trade, after falling to two-week lows of 1.5424 earlier.
The Labor Department reported that the U.S. economy added 215,000 jobs last month, slightly lower than forecasts for an increase of 223,000, but still consistent with strong employment growth.
The unemployment rate remained unchanged at 5.3%, in line with expectations.
Hourly earnings, a component of the jobs report that the Federal Reserve has said must rise, ticked up 0.2%, also matching forecasts after stalling in the previous month.
The data was seen as underlining expectations for a near-term rate hike.
In the past three months the dollar has been boosted by investor expectations that the Federal Reserve will raise short term interest rates in the coming months, possibly as early as September.
Sterling remained on the back foot after Thursday’s minutes of the Bank of England’s August meeting showed that just one monetary policy committee member voted in favor of a rate hike this month.
The minutes showed that eight members were in favor of leaving the key interest rate at a record low of 0.5%. All nine members voted to stand pat on rates in July.
Ian McCafferty was the lone dissenter, voting for a quarter percent hike in the benchmark rate.
The minutes came as a surprise to market participants, who had expected two or possibly even three members of the MPC to back a rate increase this month.
It was the first time the minutes were published at the same time as the monthly monetary policy decision.
EUR/GBP was up 0.55% to 0.7079 from 0.7040 late Thursday.
In the week ahead, investors will be looking to Thursday’s U.S. retail sales data for a further indication on the durability of the economic recovery. Speeches by Fed officials on Monday will also be in focus.
Meanwhile, the U.K. is to release its latest jobs report on Wednesday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 10
Federal Reserve Governor Stanley Fischer and Atlanta Fed President Dennis Lockhart are to speak; their comments will be closely watched.
Tuesday, August 11
The U.S. is to release preliminary data on unit labor costs.
Wednesday, August 12
The U.K. is to publish its latest employment report.
Thursday, August 13
The U.S. is to produce data on retail sales, initial jobless claims and import prices.
Friday, August 14
The U.S. is to release data on producer prices, industrial production and consumer sentiment to round up the week.