Investing.com - The pound was little changed against the U.S. dollar in subdued trade on Monday, after the release of strong U.S retail sales data and amid fresh concerns over tensions in Ukraine.
GBP/USD hit 1.6697 during U.S. morning trade, the pair's lowest since April 8; the pair subsequently consolidated at 1.6727, inching down 0.02%.
Cable was likely to find support at 1.6658, the low of March 5 and resistance at 1.6788, the high of April 11.
Official data showed that U.S. retail sales rose 1.1% in March, exceeding expectations for a 0.8% gain. Retail sales in February were revised up to a 0.7% increase from a previously estimated 0.3% rise.
Core retail sales, which exclude automobiles, rose 0.7% last month, more than the expected 0.5% increase, after a 0.3% gain in February.
Meanwhile, market sentiment remained under pressure amid fresh fears over Ukraine as the threat of military action by Kiev against pro-Russian separatists in the east of the country mounted after a deadline for them to leave government buildings they are occupying expired.
The U.S. has indicated that it is prepared to impose more sanctions against Moscow if Russian encroachments in eastern Ukraine continue.
Sterling was higher against the euro, with EUR/GBP declining 0.45% to 0.8262.
The single currency weakened broadly after European Central Bank President Mario Draghi said Saturday that further gains in the euro would trigger additional monetary easing to keep inflation from falling.
ECB governing council member and Bank of France governor Christian Noyer said Monday that a weaker euro is desirable; adding that the stronger the currency is the more "accommodating" monetary policy needs to be.
Data last month showed that the annual rate of inflation in the euro area slowed to 0.5%, well below the ECB’s target of just under 2%. The central bank kept monetary policy on hold unchanged earlier this month, but said it would consider unconventional measures if needed to prevent low inflation from becoming entrenched in the euro zone.