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Forex - GBP/USD edges lower ahead of key U.K. inflation data

Published 10/12/2010, 03:53 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound edged lower against the U.S. dollar on Tuesday, falling to hit a 2-day low, ahead of the release of a key report on U.K. consumer prices.

GBP/USD hit 1.5859 during early European trade, the pair’s lowest since October 8; the pair subsequently consolidated at 1.5874, shedding 0.07%.

Cable was likely to find support at 1.5751, the low of October 5 and resistance at 1.5964, the high of October 8.

Late Monday, industry data from the British Retail Consortium said that retail sales rose at an annualized rate of 0.5% in September, after rising by 1.0% in August.

Also Monday, the Royal Institution of Chartered Surveyors said that house prices in the U.K. fell more-than-expected in September as oversupply in the British property market continued to act as a drag on prices.

Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.32% to hit 0.8710.

Later in the day, the U.K. was to publish official data on consumer price inflation. This is considered the U.K.'s most important inflation data because it's used as the central bank's inflation target.

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