Investing.com - The pound was little changed against the dollar on Tuesday after official data showed that the rate of consumer inflation in the U.K. eased in line with forecasts in July.
GBP/USD hit 1.5483 during European morning trade, the session high; the pair subsequently consolidated at 1.5475, edging up 0.09%.
Cable was likely to find support at 1.5380 and resistance at 1.5520, Monday’s high.
The Office for National Statistics said consumer price inflation in the U.K. ticked down to 2.8% on a year-over-year basis in July, in line with economists’ expectations, from 2.9% in June.
The decline in inflation was due to lower airfares and clothing prices the ONS said.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 2% in July, below expectations for a 2.3% increase.
Consumer inflation was flat last month, compared to expectations for a 0.1% increase and after falling 0.2% in June.
The retail price index rose 3.1% last month, in line with expectations, after rising 3.3% June.
Earlier Tuesday, a report by the Royal Institution of Chartered Surveyors said that U.K. house prices rose at the fastest pace in seven years in July, fuelling fears over a housing bubble.
The RICS seasonally adjusted house price balance jumped to 36 in July from a reading of 21 in June.
Investors were looking ahead to U.S. retail sales data later in the session amid hopes that a strong number would reinforce the view that the economic recovery was established enough for the Federal Reserve to begin phasing out its asset purchase program later this year.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.12% to 0.8591.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday.
GBP/USD hit 1.5483 during European morning trade, the session high; the pair subsequently consolidated at 1.5475, edging up 0.09%.
Cable was likely to find support at 1.5380 and resistance at 1.5520, Monday’s high.
The Office for National Statistics said consumer price inflation in the U.K. ticked down to 2.8% on a year-over-year basis in July, in line with economists’ expectations, from 2.9% in June.
The decline in inflation was due to lower airfares and clothing prices the ONS said.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 2% in July, below expectations for a 2.3% increase.
Consumer inflation was flat last month, compared to expectations for a 0.1% increase and after falling 0.2% in June.
The retail price index rose 3.1% last month, in line with expectations, after rising 3.3% June.
Earlier Tuesday, a report by the Royal Institution of Chartered Surveyors said that U.K. house prices rose at the fastest pace in seven years in July, fuelling fears over a housing bubble.
The RICS seasonally adjusted house price balance jumped to 36 in July from a reading of 21 in June.
Investors were looking ahead to U.S. retail sales data later in the session amid hopes that a strong number would reinforce the view that the economic recovery was established enough for the Federal Reserve to begin phasing out its asset purchase program later this year.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.12% to 0.8591.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday.