Investing.com - The pound erased early losses to end little changed against the dollar on Friday after unexpectedly weak U.S. housing data, but expectations for higher interest rates continued to underpin demand for the greenback.
GBP/USD was at 1.5519 late Friday, almost unchanged for the day and up from session lows of 1.5467.
The dollar eased after data showing that U.S. new home sales fell to a seven-month low in June, but another report showed that manufacturing activity edged higher this month.
The Commerce Department reported that sales of new homes fell 6.8% last month, to an annual rate of 482,000 units, the lowest level since November.
May's figure was revised down to 517,000 units from the previously reported 546,000 units.
A separate report showed that the Markit manufacturing index ticked up to 53.8 this month from 53.6 in June, which was the slowest pace since October 2013.
The mixed data came as investors were turning their attention to the upcoming Federal Reserve policy announcement on Wednesday amid ongoing speculation over the timing of an initial interest rate hike.
On Friday, the Fed mistakenly published a staff projection pointing to a quarter point rate hike later this year.
The dollar has been boosted by expectations that the U.S. central bank could raise rates as soon as September if the economy continues to improve as expected.
Sterling was also steady against the euro, with EUR/GBP at 0.7076 in late trade.
The single currency remained supported as talks between Greece and its international creditors on a new bailout package were delayed until Monday.
Talks had been expected to start on Friday but were delayed by logistical issues, including security matters.
A new agreement must be reached before August 20 when Greece must repay more than €3 billion to the European Central Bank.
In the week ahead, investors will be focusing on Wednesday’s monetary policy announcement by the Federal Reserve. Meanwhile, both the U.S. and the U.K. are to release what will be closely watched initial estimates on second quarter growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, July 27
The U.S. is to release data on durable goods orders.
Tuesday, July 28
The U.K. is to release preliminary data on second quarter economic growth.
The U.S. is to release a report on consumer confidence.
Wednesday, July 29
The U.K. is to release data on net lending.
The U.S. is to report on pending home sales.
Later Tuesday, the Federal Reserve is to announce its latest monetary policy decision and publish its rate statement.
Thursday, July 30
The U.S. is to produce preliminary data on second quarter growth and the weekly report on initial jobless claims.
Friday, July 31
The U.S. is to round up the week with revised data on consumer sentiment and a report on business activity in the Chicago region.