Investing.com - Sluggish U.K. inflation data sent the pound softening against the dollar on Monday, with fears the Ebola virus may come to the Britain softening the pair even further.
In U.S. trading on Tuesday, GBP/USD was down 0.99% at 1.5925, up from a session low of 1.5904 and off a high of 1.6098.
Cable was likely to find support at 1.5852, the low from Nov. 12, 2013, and resistance at 1.6227, last Thursday's high.
The U.K. Office for National Statistics reported earlier that the year-on-year consumer price index slowed to 1.2% last month from 1.5% in August. Analysts had expected U.K. CPI to fall to 1.4% in September.
Month-over-month, consumer price inflation came in flat in September after rising 0.4% in August.
Core CPI, which excludes food, energy, alcohol, and tobacco costs, rose at a rate of 1.5% last month, down from 1.9% in August. Analysts had expected core prices to rise 1.8% in September.
Markets were also jittery amid the widening Ebola epidemic, as the U.K. announced on Monday that it will begin conducting fever tests for Ebola at Heathrow airport.
Elsewhere, sterling was down against the euro, with EUR/GBP up 0.23% at 0.7946, and down against the yen, with GBP/JPY down 0.68% at 170.69.
In Europe earlier, the ZEW Centre for Economic Research reported earlier that its German economic sentiment index fell to -3.6 this month from September’s 6.9 reading. Analysts had expected the index to come in at 1.0 in October, though U.K. inflation data held sway.
The index of euro zone economic sentiment plunged to 4.1 in September from 14.2 in August, well below expectations for a decline to 7.1.
A separate report showed that eurozone industrial production contracted 1.8% in August from July, outpacing expectations for a 1.6% decline. July's figure was revised to a 0.9% rise from a previously estimated 1.0% increase.
Year-on-year, industrial production fell 1.9% in August, surpassing expectations for a 0.9% decline and after rising at a rate of 1.6% the previous month.
European Central Bank President Mario Draghi has said monetary authorities will do what it takes to steer the continent away from deflationary declines, and Tuesday's data sparked expectations that further stimulus measures may be needed to kick-start the economy.