Investing.com – The pound extended earlier losses against the U.S. dollar on Tuesday, falling to a fresh 5-day low, following remarks by a Bank of England monetary policy committee member.
GBP/USD hit 1.5794 during late European trade, the pair’s lowest since October 5; the pair subsequently consolidated at 1.5812, shedding 0.44%.
Cable was likely to find short-term support at 1.5702, the low of October 1 and resistance at 1.5964, the high of October 8.
Earlier Tuesday, David Miles said that additional quantitative easing remains a "powerful tool" at the Bank's disposal.
“Even though interest rates have been effectively cut to zero, our options are not simply how much do you tighten, I mean, you do have a tool, quantitative easing, which I think (fellow MPC member) Adam Posen coherently explained remains a powerful tool and one which we may come to use,” Miles said.
Earlier in the day, official data showed that U.K. consumer price inflation remained unchanged at 3.1% in September, in line with expectations and exceeding the government’s 3% target for a seventh month.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.10% to hit 0.8730.
Also Tuesday, a separate report showed that the U.K.'s trade deficit rose unexpectedly in August. The Office for National Statistics said that the trade deficit widened to GBP 8.2 billion in August, after rising to GBP 8.7 billion in July. Economists had expected the trade deficit to contract to GBP 8.0 billion in August.
GBP/USD hit 1.5794 during late European trade, the pair’s lowest since October 5; the pair subsequently consolidated at 1.5812, shedding 0.44%.
Cable was likely to find short-term support at 1.5702, the low of October 1 and resistance at 1.5964, the high of October 8.
Earlier Tuesday, David Miles said that additional quantitative easing remains a "powerful tool" at the Bank's disposal.
“Even though interest rates have been effectively cut to zero, our options are not simply how much do you tighten, I mean, you do have a tool, quantitative easing, which I think (fellow MPC member) Adam Posen coherently explained remains a powerful tool and one which we may come to use,” Miles said.
Earlier in the day, official data showed that U.K. consumer price inflation remained unchanged at 3.1% in September, in line with expectations and exceeding the government’s 3% target for a seventh month.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.10% to hit 0.8730.
Also Tuesday, a separate report showed that the U.K.'s trade deficit rose unexpectedly in August. The Office for National Statistics said that the trade deficit widened to GBP 8.2 billion in August, after rising to GBP 8.7 billion in July. Economists had expected the trade deficit to contract to GBP 8.0 billion in August.