Investing.com - The pound edged lower against the U.S. dollar on Wednesday, as investors awaited U.K. employment data and the Bank of England’s August meeting minutes, which could indicate if another round of monetary easing is imminent.
GBP/USD hit 1.5661 during early European trade, the session low; the pair subsequently consolidated at 1.5663, dipping 0.08%.
Cable was likely to find support at 1.5576, the low of August 13 and resistance at 1.5716, Monday’s high.
Data on Tuesday showed that consumer price inflation in the U.K. unexpectedly accelerated to 2.6% in July from 2.4% the previous month, initially supporting the pound.
But the greenback regained ground following data showing that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, surpassing expectations for a 0.3% increase and dampening expectations for another round of quantitative easing by the Federal Reserve.
Data in July showed that the U.K. economy contracted 0.7% in the second quarter, extending the recession into a third quarter and the economic outlook deteriorated last week after the BoE slashed growth forecasts in its quarterly inflation report.
However, BoE Governor Mervyn King indicated last week that a rate cut was unlikely in the near term, saying it would be counterproductive.
The pound was slightly lower against the euro, with EUR/GBP rising 0.18% to 0.7868.
Later Wednesday, the U.S. was to release official data on consumer price inflation and industrial production, as well as a report on manufacturing activity in the New York area.
GBP/USD hit 1.5661 during early European trade, the session low; the pair subsequently consolidated at 1.5663, dipping 0.08%.
Cable was likely to find support at 1.5576, the low of August 13 and resistance at 1.5716, Monday’s high.
Data on Tuesday showed that consumer price inflation in the U.K. unexpectedly accelerated to 2.6% in July from 2.4% the previous month, initially supporting the pound.
But the greenback regained ground following data showing that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, surpassing expectations for a 0.3% increase and dampening expectations for another round of quantitative easing by the Federal Reserve.
Data in July showed that the U.K. economy contracted 0.7% in the second quarter, extending the recession into a third quarter and the economic outlook deteriorated last week after the BoE slashed growth forecasts in its quarterly inflation report.
However, BoE Governor Mervyn King indicated last week that a rate cut was unlikely in the near term, saying it would be counterproductive.
The pound was slightly lower against the euro, with EUR/GBP rising 0.18% to 0.7868.
Later Wednesday, the U.S. was to release official data on consumer price inflation and industrial production, as well as a report on manufacturing activity in the New York area.