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Forex - GBP/USD lower after U.K. CPI data

Published 07/16/2013, 04:51 AM
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Investing.com - The pound touched session lows against the dollar on Tuesday after official data showed that consumer price inflation in the U.K. rose slightly less-than-expected in June.

GBP/USD hit 1.5046 during European morning trade, the session low; the pair subsequently consolidated at 1.5054, shedding 0.26%.

Cable is likely to find support at 1.4996, the low of July 11 and resistance at 1.5142, the session high.

The Office for National Statistics said U.K. consumer price inflation rose 2.9% from a year earlier in June, coming in below expectations for a 3.0% increase and up from 2.7% in May.

The ONS said the increase in annual inflation was driven by higher prices for fuel, clothing and footwear.

Consumer inflation fell 0.2% on the month, compared to expectations for a 0.1% decline.

Core CPI, which excludes food, energy, alcohol, and tobacco costs rose to a seasonally adjusted 2.3% in June, in line with expectations and up from 2.2% in May.

The retail price index rose 3.3% last month, slightly below expectations for a 3.4% increase.

Elsewhere, sterling fell to session lows against the euro, with EUR/GBP rising 0.36% to 0.8679.

The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday and the euro zone was to release official data on consumer price inflation.

The U.S. was also to release official data on consumer price inflation and a report on industrial production.




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