Investing.com – The pound slipped against the U.S. dollar on Monday, as investors took profits after the currency advanced to two-month highs and as doubts grew over the possibility of an interest rate hike by the Bank of England in the near term.
GBP/USD hit 1.5921 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.5947, shedding 0.32%.
Cable was likely to find support at 1.5866, Friday’s low and resistance at 1.6058, the high of January 18 and a two-month high.
On Friday, BoE policymaker Adam Posen pointed to downside risks to prices, saying his view on underlying inflation was unchanged. His remarks came after official data showed retail sales fell 0.8% during December, double the expected decline.
Sterling had been well supported since higher-than-forecast U.K. inflation data earlier in the month caused markets to bring forward expectations for when the BoE would hike rates.
Meanwhile, the pound edged higher against the euro, with EUR/GBP slipping 0.09% to hit 0.8505.
Earlier in the day, preliminary data showed that the euro zone purchasing manager services index rose more-than-expected in January while manufacturing PMI unexpectedly fell to a two month low.
A separate report showed that euro zone industrial new orders rose less-than-expected in November.
GBP/USD hit 1.5921 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.5947, shedding 0.32%.
Cable was likely to find support at 1.5866, Friday’s low and resistance at 1.6058, the high of January 18 and a two-month high.
On Friday, BoE policymaker Adam Posen pointed to downside risks to prices, saying his view on underlying inflation was unchanged. His remarks came after official data showed retail sales fell 0.8% during December, double the expected decline.
Sterling had been well supported since higher-than-forecast U.K. inflation data earlier in the month caused markets to bring forward expectations for when the BoE would hike rates.
Meanwhile, the pound edged higher against the euro, with EUR/GBP slipping 0.09% to hit 0.8505.
Earlier in the day, preliminary data showed that the euro zone purchasing manager services index rose more-than-expected in January while manufacturing PMI unexpectedly fell to a two month low.
A separate report showed that euro zone industrial new orders rose less-than-expected in November.