Investing.com - The pound softened in front of the dollar on Tuesday after official data revealed that the U.K.'s consumer price index inched ahead at its slowest pace in more than a year in October.
In U.S. trading on Tuesday, GBP/USD was trading at 1.5918, down 0.44%, up from a session low of 1.5854 and off from a high of 1.5992.
Cable was likely to find support at 1.5776, the low from Sept. 13, and resistance at 1.6002, Monday's high.
The pound softened after the Office for National Statistics said the U.K.'s annual inflation rate slowed to 2.2% in October, its lowest rise since September 2012, from 2.7% the previous month.
Economists were expecting a 2.5% year-on-year inflation rate for October.
The weak data prompted investors to rethink expectations that the Bank of England might hike interest rates sooner than the bank’s forward guidance from August indicated.
Inflation was 0.1% higher from a month earlier in October, below expectations for a 0.3% rise.
The U.K.'s core inflation rate, which is stripped of volatile energy, food, alcohol and tobacco items, slowed to 1.7% year-on-year, the lowest increase since September 2009 and well below September's 2.2% rate and expectations for a 2.0% rate.
The retail price index rose 2.6% in October, below forecasts for a 3.0% increase after rising 3.2% in September.
The data also revealed that the house prices index climbed 3.8% last month, missing consensus forecasts for a 4.1% gain.
Meanwhile the dollar continued to see support amid ongoing expectations for the Federal Reserve to begin scaling back its USD85 billion in monthly bond purchases either in December or in early 2014.
Stimulus tools such as monthly bond purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process.
Last week, the Bureau of Labor Statistics reported that the U.S. economy added 204,000 jobs in October, far surpassing expectations for a 125,000 increase.
Official data also revealed that the U.S. economy grew 2.8% on year in the third quarter, well beyond expectations for 2.0% growth.
Uncertainty over the timing of a Federal Reserve announcement to begin tapering the pace of its monthly bond purchases watered down the greenback's gains, as many expect the U.S. central bank to remain in standby mode until Janet Yellen takes the helm and holds her first policy meeting in March.
The pound, meanwhile, was down against the euro and flat against the yen, with EUR/GBP up 0.60% at 0.8436 and GBP/JPY up 0.01% at 158.55.
On Wednesday, the U.K. is to release official data on the change in the number of people unemployed and the unemployment rate, as well as data on average earnings. Meanwhile, the Bank of England is to publish its closely watched quarterly inflation report, while BoE Governor Mark Carney is to speak at a press conference to accompany the report.
In U.S. trading on Tuesday, GBP/USD was trading at 1.5918, down 0.44%, up from a session low of 1.5854 and off from a high of 1.5992.
Cable was likely to find support at 1.5776, the low from Sept. 13, and resistance at 1.6002, Monday's high.
The pound softened after the Office for National Statistics said the U.K.'s annual inflation rate slowed to 2.2% in October, its lowest rise since September 2012, from 2.7% the previous month.
Economists were expecting a 2.5% year-on-year inflation rate for October.
The weak data prompted investors to rethink expectations that the Bank of England might hike interest rates sooner than the bank’s forward guidance from August indicated.
Inflation was 0.1% higher from a month earlier in October, below expectations for a 0.3% rise.
The U.K.'s core inflation rate, which is stripped of volatile energy, food, alcohol and tobacco items, slowed to 1.7% year-on-year, the lowest increase since September 2009 and well below September's 2.2% rate and expectations for a 2.0% rate.
The retail price index rose 2.6% in October, below forecasts for a 3.0% increase after rising 3.2% in September.
The data also revealed that the house prices index climbed 3.8% last month, missing consensus forecasts for a 4.1% gain.
Meanwhile the dollar continued to see support amid ongoing expectations for the Federal Reserve to begin scaling back its USD85 billion in monthly bond purchases either in December or in early 2014.
Stimulus tools such as monthly bond purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process.
Last week, the Bureau of Labor Statistics reported that the U.S. economy added 204,000 jobs in October, far surpassing expectations for a 125,000 increase.
Official data also revealed that the U.S. economy grew 2.8% on year in the third quarter, well beyond expectations for 2.0% growth.
Uncertainty over the timing of a Federal Reserve announcement to begin tapering the pace of its monthly bond purchases watered down the greenback's gains, as many expect the U.S. central bank to remain in standby mode until Janet Yellen takes the helm and holds her first policy meeting in March.
The pound, meanwhile, was down against the euro and flat against the yen, with EUR/GBP up 0.60% at 0.8436 and GBP/JPY up 0.01% at 158.55.
On Wednesday, the U.K. is to release official data on the change in the number of people unemployed and the unemployment rate, as well as data on average earnings. Meanwhile, the Bank of England is to publish its closely watched quarterly inflation report, while BoE Governor Mark Carney is to speak at a press conference to accompany the report.