Investing.com - The pound was higher against the U.S. dollar on Tuesday, even as data showed that consumer price inflation in the U.K. rose at the slowest rate in 12 years in November.
GBP/USD hit 1.5677 during European morning trade, the session high; the pair subsequently consolidated at 1.5721, gaining 0.52%.
Cable was likely to find support at 1.5539, the low of December 8 and a 15-month low and resistance at 1.5747, Monday's high.
In a report, the U.K. Office for National Statistics said the annual rate of consumer price inflation slowed to 1.0% last month from 1.3% in November. It was the lowest rate of inflation since September 2002 and was below forecasts of 1.2%.
Consumer prices fell 0.3% on a month-over-month basis after a 0.1% increase in October.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 1.2% last month, down from 1.2% in October. Economists had expected an unchanged reading.
The report also showed that the U.K. house prices index rose just 10.4% last month, down from 12.1% in October.
Meanwhile, investors remained cautious ahead of Wednesday's Federal Reserve policy statement, as ongoing speculation over the prospects for a U.S. rate hike next year fuelled expectations that the U.S. central bank could adjust its forward guidance.
Sterling was lower against the euro, with EUR/GBP adding 0.19% to 0.7968.
In the euro zone, research group Markit said its preliminary manufacturing purchasing managers’ index rose to a five-month high of 50.8 this month from a final reading of 50.1 in November. Economists had expected the index to tick up to 50.5.
The preliminary reading of the euro zone services PMI rose to a two-month high 51.9 from a final reading of 51.1 last month, compared to expectations for an increase to 51.5.
Germay's preliminary manufacturing PMI rose to a two-month high of 51.2 this month from a final reading of 49.5 in November. Analysts had expected the index to tick up to 50.4.
However, the preliminary reading of the German services PMI slid to a 17-month low of 51.4 from a final reading of 52.1 last month, compared to expectations for an increase to 52.6.
Later in the day, the U.S. was to publish reports on building permits and housing starts.