Forex - GBP/USD little changed after U.K. inflation data

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Investing.com - The pound was little changed against the dollar on Tuesday after official data showed that consumer inflation in the U.K. ticked up to a nine-month high in February.

GBP/USD hit 1.5135 during European morning trade, the session high; the pair subsequently consolidated at 1.5119, edging up 0.08%.

Cable was likely to find support at 1.5067, Friday's low and resistance at 1.5220.

The Office for National Statistics said consumer price inflation rose 2.8% last month, in line with expectations and up from 2.7% in December.

The ONS said consumer prices were pushed higher by a mix of increases in household gas and electricity bills, higher petrol prices and increased costs for video games and photographic equipment.

Core CPI, which excludes food, energy, alcohol, and tobacco costs held steady at a seasonally adjusted 2.3% in February, compared to expectations for a decline to 2.2%.

The retail price index rose 3.2% last month, compared to expectations for a 3.3% increase, after rising 3.3% January.

The Bank of England was to publish the minutes of its March meeting on Wednesday after the minutes of the bank's February meeting showed the policymakers were leaning towards restarting the bank's asset purchase program.

Overall market sentiment remained cautious amid fears that a controversial bank deposit tax needed for Cyprus to secure a bailout could rekindle instability in the euro zone.

Sterling was higher against the euro, with EUR/GBP sliding 0.19% to 0.8559.

In the euro zone, data showed that the ZEW index of German economic sentiment ticked up to 48.5 in March from February's reading of 48.2.

However, the ZEW index of euro zone economic sentiment declined to 33.4 in March from a reading of 42.4 in February.




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