Investing.com - The pound was almost unchanged against the U.S. dollar on Wednesday, as concerns over the outlook for growth in the U.S. and the euro zone continued to weigh after the Bank of England raised its forecast for short-term inflation and said growth would remain sluggish.
GBP/USD 1.5901 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5876, easing up 0.03%.
Cable was likely to find support at 1.5829, the low of September 5 and resistance at 1.5943, the high of September 6.
Sentiment remained mildy supported after German newspaper Bild reported Tuesday that Greece could receive three bailout installments in one single payment of EUR44 billion, citing German government sources.
But concerns that the economic outlook for the euro zone is worsening were underlined after official data showed that industrial production in the bloc tumbled 2.5% in September, compared to expectations for a 1.9% decline.
In the U.S., official data showed that retail sales fell by 0.3% in October, disappointing expectations for a 0.2% decline, while core retail sales, which exclude automobile sales, were flat last month.
A separate report showed that producer price inflation in the U.S. fell unexpectedly in October, while core prices also dipped.
Earlier in the day, 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.
Separately, 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.
Sterling was lower against the euro with EUR/GBP rising 0.31%, to hit 0.8028.
Later in the day, the Federal Reserve was to publish the minutes of its most recent policy-setting meeting.
GBP/USD 1.5901 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5876, easing up 0.03%.
Cable was likely to find support at 1.5829, the low of September 5 and resistance at 1.5943, the high of September 6.
Sentiment remained mildy supported after German newspaper Bild reported Tuesday that Greece could receive three bailout installments in one single payment of EUR44 billion, citing German government sources.
But concerns that the economic outlook for the euro zone is worsening were underlined after official data showed that industrial production in the bloc tumbled 2.5% in September, compared to expectations for a 1.9% decline.
In the U.S., official data showed that retail sales fell by 0.3% in October, disappointing expectations for a 0.2% decline, while core retail sales, which exclude automobile sales, were flat last month.
A separate report showed that producer price inflation in the U.S. fell unexpectedly in October, while core prices also dipped.
Earlier in the day, 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.
Separately, 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.
Sterling was lower against the euro with EUR/GBP rising 0.31%, to hit 0.8028.
Later in the day, the Federal Reserve was to publish the minutes of its most recent policy-setting meeting.