Investing.com - Inflation rates that met expectations in the U.K. kept the pound stable against the dollar on Tuesday.
The dollar strengthened against other currencies due to fears Cyprus may slap taxes on bank deposits amid risk-off trading sentiments, though Cable held steady thank to U.K. consumer price data.
In U.S. trading on Tuesday, GBP/USD was trading at 1.5099, down 0.06%, up from a session low of 1.5074 and off from a high of 1.5145.
The pair was likely to find support at 1.5073, Monday's low, and resistance at 1.5176, last Wednesday's high.
Official data released earlier revealed that the U.K.'s year-on-year consumer price index jumped to a nine-month high of 2.8% in February, in line with expectations, while the monthly CPI rose 0.7%, also in line with expectations.
The data made the pound more attractive against the dollar than most other currencies, as the dollar enjoyed safe-haven demand all day as Cyprus mulled a proposed tax on bank deposits.
Meanwhile in the U.S., the dollar also saw gains ahead of the Federal Reserve's two-day monetary policy than began on Tuesday.
No changes to policy were expected, which bolstered the greenback.
The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP trading down 0.05% at 0.8742 and GBP/JPY down 0.46% at 142.96.
Better-than-expected housing data also edged up the dollar against the pound.
The Commerce Department reported earlier that the number of building permits issued in February hit its highest level since June 2008.
Housing starts beat expectations as well, cementing widespread views that the country’s economic recovery is gaining steam.
Building permits issued in February rose 4.6% to 946,000 units, above market calls for a 2.3% increase to 925,000.
U.S. housing starts, meanwhile, rose by 0.8% in February to 917,000 units, better than analysts' calls for a jump to 915,000.
The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP trading down 0.58% at 0.8527 and GBP/JPY down 0.24% at 143.51.
The dollar strengthened against other currencies due to fears Cyprus may slap taxes on bank deposits amid risk-off trading sentiments, though Cable held steady thank to U.K. consumer price data.
In U.S. trading on Tuesday, GBP/USD was trading at 1.5099, down 0.06%, up from a session low of 1.5074 and off from a high of 1.5145.
The pair was likely to find support at 1.5073, Monday's low, and resistance at 1.5176, last Wednesday's high.
Official data released earlier revealed that the U.K.'s year-on-year consumer price index jumped to a nine-month high of 2.8% in February, in line with expectations, while the monthly CPI rose 0.7%, also in line with expectations.
The data made the pound more attractive against the dollar than most other currencies, as the dollar enjoyed safe-haven demand all day as Cyprus mulled a proposed tax on bank deposits.
Meanwhile in the U.S., the dollar also saw gains ahead of the Federal Reserve's two-day monetary policy than began on Tuesday.
No changes to policy were expected, which bolstered the greenback.
The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP trading down 0.05% at 0.8742 and GBP/JPY down 0.46% at 142.96.
Better-than-expected housing data also edged up the dollar against the pound.
The Commerce Department reported earlier that the number of building permits issued in February hit its highest level since June 2008.
Housing starts beat expectations as well, cementing widespread views that the country’s economic recovery is gaining steam.
Building permits issued in February rose 4.6% to 946,000 units, above market calls for a 2.3% increase to 925,000.
U.S. housing starts, meanwhile, rose by 0.8% in February to 917,000 units, better than analysts' calls for a jump to 915,000.
The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP trading down 0.58% at 0.8527 and GBP/JPY down 0.24% at 143.51.