Investing.com - The pound eased back from almost eight-month highs against the dollar on Tuesday after data showed that U.K. consumer inflation slowed in August, but the dollar remained under pressure ahead of the outcome of the Federal Reserve’s latest policy meeting.
GBP/USD pulled away from 1.5936, the session high, to hit 1.5912 during European morning trade, up 0.09% for the day.
Cable was likely to find support at 1.5850 and resistance at 1.5962, Monday’s high and the highest since January.
The Office for National Statistics said U.K. consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July, in line with economists’ forecasts.
Core CPI remained unchanged at 2% last month, compared to expectations for an uptick to 2.1%.
Consumer prices rose by 0.4% on the month in August, compared to expectations for a 0.5% increase.
The dollar remained under pressure ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, amid expectations for a small reduction in the bank’s stimulus program.
The dollar weakened broadly on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the U.S. central bank.
Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, Janet Yellen.
Sterling was almost unchanged against the euro, with EUR/GBP inching up 0.02% to 0.8389.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release data on consumer prices.
GBP/USD pulled away from 1.5936, the session high, to hit 1.5912 during European morning trade, up 0.09% for the day.
Cable was likely to find support at 1.5850 and resistance at 1.5962, Monday’s high and the highest since January.
The Office for National Statistics said U.K. consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July, in line with economists’ forecasts.
Core CPI remained unchanged at 2% last month, compared to expectations for an uptick to 2.1%.
Consumer prices rose by 0.4% on the month in August, compared to expectations for a 0.5% increase.
The dollar remained under pressure ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, amid expectations for a small reduction in the bank’s stimulus program.
The dollar weakened broadly on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the U.S. central bank.
Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, Janet Yellen.
Sterling was almost unchanged against the euro, with EUR/GBP inching up 0.02% to 0.8389.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release data on consumer prices.