Investing.com – The pound rose to a daily high against the U.S. dollar on Tuesday, ahead of the release of U.K. data on consumer prices, with expectations for an interest rate rise in the near term providing strong support.
GBP/USD hit 1.6062 during European morning trade, the daily high; the pair subsequently consolidated at 1.6058, gaining 0.12%.
Cable was likely to find support at 1.5981, Monday’s low and resistance at 1.6112, Friday’s high.
The pound has rallied since the beginning of the year amid growing rate-hike expectations, with markets looking to the Bank of England for decisive action as inflation has consistently over-shot the bank's 2% target rate.
Data on Friday showed U.K. producer input prices rose 13.4% on the year in January.
The BoE left rates on hold last week, but markets are almost fully priced for a hike in May and a further two rises by the end of the year.
The pound also edged higher against the euro, with EUR/GBP dipping 0.03% to hit 0.8406.
Later in the day, the U.K. was to publish official data on consumer price inflation, while the U.S. was to publish government data on retail sales as well as a report on manufacturing activity in New York.
GBP/USD hit 1.6062 during European morning trade, the daily high; the pair subsequently consolidated at 1.6058, gaining 0.12%.
Cable was likely to find support at 1.5981, Monday’s low and resistance at 1.6112, Friday’s high.
The pound has rallied since the beginning of the year amid growing rate-hike expectations, with markets looking to the Bank of England for decisive action as inflation has consistently over-shot the bank's 2% target rate.
Data on Friday showed U.K. producer input prices rose 13.4% on the year in January.
The BoE left rates on hold last week, but markets are almost fully priced for a hike in May and a further two rises by the end of the year.
The pound also edged higher against the euro, with EUR/GBP dipping 0.03% to hit 0.8406.
Later in the day, the U.K. was to publish official data on consumer price inflation, while the U.S. was to publish government data on retail sales as well as a report on manufacturing activity in New York.