Investing.com – The pound fell to a three-day low against the U.S. dollar on Tuesday, ahead of the release of U.K. data on inflation and after reports showing that retail sales fell at their fastest annual pace in nearly six years and house prices slipped in March.
GBP/USD hit 1.6265 during European morning trade, the pair’s lowest since April 7; the pair subsequently consolidated at 1.6294, shedding 0.29%.
Cable was likely to find support at 1.6256, the low of April 6 and resistance at 1.6425, Tuesday’s high and a 15-month high.
Earlier in the day, the British Retail Consortium said like-for-like retail sales were 3.5% lower in March compared to a year ago, its biggest fall since April 2005.
"This is strong evidence of the pressure customers and traders are under," said BRC Director General Stephen Robertson. "Uncomfortably high inflation and low wage growth have produced the first year-on-year fall in disposable incomes for 30 years."
In a separate report, the Royal Institution of Chartered Surveyors said 23% more surveyors reported a fall rather than a rise in property prices in March, compared with 26% in February.
Tight lending, worries about a possible rate rise and doubts about the economic outlook have deterred buyers, RICS said.
The pound was also lower against the euro, with EUR/GBP rising 0.26% to hit 0.8854.
Later Tuesday, the U.K. was to publish official data on consumer price inflation while the U.S. was to release government data on its trade balance and the federal budget balance.
GBP/USD hit 1.6265 during European morning trade, the pair’s lowest since April 7; the pair subsequently consolidated at 1.6294, shedding 0.29%.
Cable was likely to find support at 1.6256, the low of April 6 and resistance at 1.6425, Tuesday’s high and a 15-month high.
Earlier in the day, the British Retail Consortium said like-for-like retail sales were 3.5% lower in March compared to a year ago, its biggest fall since April 2005.
"This is strong evidence of the pressure customers and traders are under," said BRC Director General Stephen Robertson. "Uncomfortably high inflation and low wage growth have produced the first year-on-year fall in disposable incomes for 30 years."
In a separate report, the Royal Institution of Chartered Surveyors said 23% more surveyors reported a fall rather than a rise in property prices in March, compared with 26% in February.
Tight lending, worries about a possible rate rise and doubts about the economic outlook have deterred buyers, RICS said.
The pound was also lower against the euro, with EUR/GBP rising 0.26% to hit 0.8854.
Later Tuesday, the U.K. was to publish official data on consumer price inflation while the U.S. was to release government data on its trade balance and the federal budget balance.