Investing.com - The pound was trading near two-and-a-half week lows against the U.S. dollar on Friday, as growing expectations for the Federal Reserve to soon begin scaling back its stimulus program lent support to the greenback.
GBP/USD hit 1.6263 during U.S. morning trade, the pair's lowest since November 27; the pair subsequently consolidated at 1.6276, retreating 0.45%.
Cable was likely to find support at 1.6198, the low of November 27 and resistance at 1.6418, Thursday's high.
The dollar remained supported after official data earlier showed that U.S. producer price inflation fell 0.1% last month, in line with expectations, after a 0.2% decline in October.
Core producer price inflation, which excludes food and energy, rose 0.1% in November, as expected, after a 0.2% increase the previous month.
The data did little to alter expectations that the Fed could begin tapering its USD85 billion a month asset purchase program at its policy meeting scheduled for December 17-18.
Sterling was lower against the euro, with EUR/GBP gaining 0.30% to 0.8437.
The single currency remained mildy supported as expectations for further monetary easing by the European Central Bank dimmed after the bank left monetary policy unchanged at its meeting this month, following a surprise rate cut in November.
GBP/USD hit 1.6263 during U.S. morning trade, the pair's lowest since November 27; the pair subsequently consolidated at 1.6276, retreating 0.45%.
Cable was likely to find support at 1.6198, the low of November 27 and resistance at 1.6418, Thursday's high.
The dollar remained supported after official data earlier showed that U.S. producer price inflation fell 0.1% last month, in line with expectations, after a 0.2% decline in October.
Core producer price inflation, which excludes food and energy, rose 0.1% in November, as expected, after a 0.2% increase the previous month.
The data did little to alter expectations that the Fed could begin tapering its USD85 billion a month asset purchase program at its policy meeting scheduled for December 17-18.
Sterling was lower against the euro, with EUR/GBP gaining 0.30% to 0.8437.
The single currency remained mildy supported as expectations for further monetary easing by the European Central Bank dimmed after the bank left monetary policy unchanged at its meeting this month, following a surprise rate cut in November.