Investing.com - The pound was little changed close to a two-month low against the U.S. dollar on Wednesday, after the Bank of England raised its forecast for short-term inflation and said growth would remain sluggish.
GBP/USD hit 1.5901 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5869, inching down 0.01%.
Cable was likely to find support at 1.5856, Tuesday’s low and a two-month low and near-term resistance at 1.5914, Tuesday’s high.
The BoE’s quarterly inflation report said that it will take until the third quarter of 2014 before inflation will fall below the bank’s 2% target, nine months longer than the bank forecast in August.
The report came after official data on Tuesday showed that the annual rate of consumer price inflation in the U.K. accelerated to a more than one-year high of 2.7% in October from 2.2% in September.
Earlier Wednesday, official data showed that that the number of people in the U.K. claiming unemployment benefits rose by a seasonally adjusted 10,100 in October, the largest increase since September 2011, compared to expectations for a decline of 5,100.
However, the unemployment rate ticked down to 7.8% from 7.9% in September, against forecasts for an unchanged reading.
The pound was lower against the euro, with EUR/GBP rising 0.24% to 0.8022.
Later in the day, the U.S. was to produce government data on retail sales, producer price inflation and business inventories. In addition, the Federal Reserve was to publish the minutes of its most recent policy-setting meeting.
GBP/USD hit 1.5901 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5869, inching down 0.01%.
Cable was likely to find support at 1.5856, Tuesday’s low and a two-month low and near-term resistance at 1.5914, Tuesday’s high.
The BoE’s quarterly inflation report said that it will take until the third quarter of 2014 before inflation will fall below the bank’s 2% target, nine months longer than the bank forecast in August.
The report came after official data on Tuesday showed that the annual rate of consumer price inflation in the U.K. accelerated to a more than one-year high of 2.7% in October from 2.2% in September.
Earlier Wednesday, official data showed that that the number of people in the U.K. claiming unemployment benefits rose by a seasonally adjusted 10,100 in October, the largest increase since September 2011, compared to expectations for a decline of 5,100.
However, the unemployment rate ticked down to 7.8% from 7.9% in September, against forecasts for an unchanged reading.
The pound was lower against the euro, with EUR/GBP rising 0.24% to 0.8022.
Later in the day, the U.S. was to produce government data on retail sales, producer price inflation and business inventories. In addition, the Federal Reserve was to publish the minutes of its most recent policy-setting meeting.