GBP/USD weekly outlook: April 7 - 11

The pound ended the week lower against the U.S. dollar on Friday after reports showed that all three U.K. PMI surveys for March fell short of expectations, while data on Friday showed that the U.S. economy added slightly fewer than expected jobs last month.
GBP/USD touched lows of 1.6556, the weakest since March 26 and was last down 0.14% to 1.6574. For the week, the pair last 0.54%.
Cable is likely to find support at 1.6480 and resistance at 1.6660, Thursday’s high.
The Labor Department reported Friday that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000. February’s figure was revised up to 197,000 from a previously reported 175,000. The U.S. unemployment rate remained unchanged at 6.7%, compared to expectations for a tick down to 6.6%.
The data disappointed some market expectations for a more robust reading but indicated that the Federal Reserve is likely to stick to the current pace of reductions to its asset purchase program.
The pound remained softer after data on Thursday showed that the U.K. service sector continued to expand steadily in March, albeit at the slowest pace in nine months.
The Markit/CIPS services purchasing managers index ticked down to 57.6 last month from 58.2 in February. Analysts had expected the index to decline to 58.1.
The index remained well above the 50 level that separates growth from contraction, and signaled another month of robust growth in the sector, which comprises more than three-quarters of the U.K. economy.
Earlier in the week, reports showed that the manufacturing and construction PMI’s for March also came in below market expectations but still pointed to robust first quarter growth in the U.K.
Elsewhere, sterling was almost unchanged against the euro on Friday, with EUR/USD settling at 0.8268 at the close of trade. The euro fell sharply against the pound on Thursday after the European Central Bank it would use unconventional measures if necessary to stave off the risk of deflation in the euro zone.
In the week ahead, markets will be focusing on Wednesday’s minutes of the Fed’s most recent policy setting meeting. Thursday’s monetary policy announcement by the Bank of England 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. The guide skips Monday, as there are no relevant events on this day.

Tuesday, April 8
The U.K. is to release a report on industrial and manufacturing production, a leading indicator of economic health.

Wednesday, April 9
The U.K. is to produce data on the trade balance, the difference in value between imports and exports.
Later Wednesday, the Federal Reserve is to publish what will be the closely watched minutes of its latest policy meeting.

Thursday, April 10
The Bank of England is to announce its benchmark interest rate.
In the U.S., the Labor Department is to release its weekly report on initial jobless claims.

Friday, April 11
The U.S. is to round up the week with data on producer price inflation and the preliminary report on the University of Michigan’s consumer sentiment index.