Analysis / Daily / Finance / forex / Money

Weak US Data Bolsters Sterling.

The pound rallied to five-week highs against the broadly weaker dollar on Friday, as a weak U.S. economic report underlined concerns that the recovery is cooling, dampening expectations for higher interest rates. GBP/USD was up 0.88% to 1.5189 in late trade, the most since 6th March, bringing the week’s gains to 1.5%. Sterling shrugged off uncertainty over the outcome of the upcoming U.K. general election on 7th May, which is likely to result in a hung parliament and an unstable coalition government. The pound received a boost earlier in the week after Wednesday’s minutes of the Bank of England’s April meeting showed that officials.

The pound rallied to five-week highs against the broadly weaker dollar on Friday, as a weak U.S. economic report underlined concerns that the recovery is cooling, dampening expectations for higher interest rates. GBP/USD was up 0.88% to 1.5189 in late trade, the most since 6th March, bringing the week’s gains to 1.5%. Sterling shrugged off uncertainty over the outcome of the upcoming U.K. general election on 7th May, which is likely to result in a hung parliament and an unstable coalition government. The pound received a boost earlier in the week after Wednesday’s minutes of the Bank of England’s April meeting showed that officials.

The dollar ended the week lower against the other major currencies on Friday, the second consecutive weekly decline as fresh economic data underlined concerns that the recovery is losing momentum. The Commerce Department reported Friday that orders for durable goods, excluding aircraft, fell 0.5% in March, after a downwardly revised 2.2% drop in February. The headline figure rose 4.0%, beating expectations for a 0.6% gain, but investors focused on underlying weakness in the report. The data came after recent weak reports on home sales, retail sales and industrial production, adding to signs of a slowdown in economic growth since the start of the year. The weak data added to pressure on the dollar which has been hit as investors pushed back expectations on the timing of an initial rate hike by the Federal Reserve. The U.S dollar index , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last down to 97.07 late Friday. The index ended the week down 0.62%.

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