Investing.com - The pound fell to a 6-month low against the
dollar earlier Tuesday after U.K. inflation data came in weaker
In U.S. trading on Tuesday, GBP/USD was trading at 1.5652, down
0.04%, up from a session low of 1.5573 and off from a high of
The pair was likely to find support at 1.5547, the low from Aug. 6,
and resistance at 1.5810, Monday's high.
In a report, the Office for National Statistics revealed that the
U.K.'s year-on-year consumer price index rose 2.7% in January,
unchanged from December.
Analysts had expected consumer prices to rise 2.8% in January.
Month-over-month, January's CPI fell 0.5% compared to expectations
for a 0.4% decline and after rising 0.5% in December.
The rate of inflation remains above the Bank of England's 2.0%
target, but the Bank of England will not be obliged to write to the
Chancellor of the Exchequer, as the inflation rate is less than a
percentage point above or below its target.
Core CPI, which excludes volatile food, energy, alcohol, and
tobacco prices, jumped 2.3% year-on-year in January from 2.4% in
Analysts had expected core prices to hold steady at 2.4%.
The retail price index rose 3.3% last month, compared to
expectations for a 3.2% increase, after rising 3.1% December.
Softer-than-expected pricing data sent the pound slumping against
the greenback, which had fallen against other currencies.
The pound, meanwhile, was down against the euro and down against
the yen, with EUR/GBP trading up 0.36% at 0.8591 and GBP/JPY down
0.89% at 146.40.
In the U.K., the Bank of England will release its quarterly
inflation report, which includes forecast for inflation over the
following two years. The release is to be followed by a press
conference with Bank of England Governor Mervyn King.
Later in the day, the U.S. is to publish official data on retail
sales, the government measure of consumer spending, which accounts
for the majority of overall economic activity. The U.S. is also to
publish data on import prices, business inventories and crude oil
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