Investing.com - The pound rose against the dollar on Friday after U.S. consumer sentiment and personal spending reports disappointed investors.
In U.S. trading on Friday, GBP/USD was trading at 1.6762, up 0.27%, up from a session low of 1.6715 and off a high of 1.6778.
Cable was likely to find support at 1.6693, Thursday''s low, and resistance at 1.6882, Tuesday''s high.
The revised Thomson Reuters/University of Michigan consumer sentiment index ticked up to 81.9 this month from 81.8 in April, missing market expectations for a reading of 82.5.
While harsh winter weather dampened spirits, concerns wages will remain weak did more so.
"The May decline in consumer confidence was not due to the dismal state of the economy during the 1st quarter, which had the weakest pace of GDP growth in three years. Consumers thought the harsh winter weather was mainly responsible," the indicator''s statement read.
Consumer sentiment would suffer more if the economy failed to rebound in the months ahead, though the survey revealed that consumers feel the economy will be strong enough to produce more jobs in the year ahead.
"The main concern expressed by consumers involved dismal prospects for wage growth. Tiny wage gains meant that nearly half of all households anticipated declines in inflation-adjusted incomes during the year ahead," the statement read.
Elsewhere, the Commerce Department reported that personal spending in the U.S. fell 0.1% last month, compared to expectations for a 0.2% rise, after a 1.0% increase in March, whose figure was revised from a previously estimated 0.9% gain.
U.S. core personal consumption expenditures, which exclude food and energy, rose 0.2% in April, in line with expectations, after a 0.2% increase the previous month.
Separately, industry data revealed that the Chicago purchasing managers'' index rose to a seven-month high of 65.5 in May, from 63.0 in March, confounding expectations for a fall to 61.0.
On Thursday, the Bureau of Economic Analysis reported that the U.S. economy contracted 1.0% in the first quarter after a preliminary estimate showed growth of 0.1%.
Market expectations had been for a 0.5% contraction. It was the first decline in U.S. GDP since the first quarter of 2011, and the dollar softened on the news, reminding investors that even when the Federal Reserve winds down stimulus programs, rate hikes won''t come for some time afterwards.
Elsewhere, sterling was up against the euro, with EUR/GBP down 0.02% at 0.8135, and up against the yen, with GBP/JPY up 0.26% at 170.61.
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