Investing.com - The pound remained higher against the U.S. dollar on Tuesday, although data showing that the annual rate of consumer inflation in the U.K. fell last month to the lowest level since November 2009 limited gains.
GBP/USD hit 1.6451 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6431, adding 0.29%.
Cable was likely to find support at 1.6273, the low of December 18 and resistance at 1.6533, the high of December 30.
The pound came under pressure earlier, after the Office for National Statistics said the annual rate of consumer inflation in the U.K. rose 2.0% last month, slowing from 2.1% in November. Economists had expected an unchanged reading.
It was the first time since 2009 that the U.K. inflation rate was in line with the Bank of England’s official target of 2%.
Consumer prices rose 0.4% month-on-month, below expectations for a 0.5% rise.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 1.7% in December, down from 1.8% in November.
The ONS said falling food prices pushed down the rate of inflation, countering higher costs for gas and electricity bills.
The U.K. house prices index climbed 5.4% in November the ONS also said, below expectations for a 5.9% gain, slowing from a 5.5% increase in October.
In the U.S., the Commerce Department said that retail sales rose by a seasonally adjusted 0.2% last month, beating expectations for a 0.1% increase. Retail sales for November were revised down to a 0.4% gain from a previously reported increase of 0.7%.
Core retail sales, which exclude automobile sales, edged up 0.7% last month, above forecasts for a 0.4% increase. Core sales rose by 0.1% in November.
Sterling was also higher against the euro, with EUR/GBP shedding 0.25% to 0.8323.
Also Tuesday, Eurostat said industrial production in the euro zone increased by 1.8% in November, beating expectations for a 1.4% gain. Industrial production in October was revised to a 0.8% decline, compared to a previously reported drop of 1.1%.
GBP/USD hit 1.6451 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6431, adding 0.29%.
Cable was likely to find support at 1.6273, the low of December 18 and resistance at 1.6533, the high of December 30.
The pound came under pressure earlier, after the Office for National Statistics said the annual rate of consumer inflation in the U.K. rose 2.0% last month, slowing from 2.1% in November. Economists had expected an unchanged reading.
It was the first time since 2009 that the U.K. inflation rate was in line with the Bank of England’s official target of 2%.
Consumer prices rose 0.4% month-on-month, below expectations for a 0.5% rise.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 1.7% in December, down from 1.8% in November.
The ONS said falling food prices pushed down the rate of inflation, countering higher costs for gas and electricity bills.
The U.K. house prices index climbed 5.4% in November the ONS also said, below expectations for a 5.9% gain, slowing from a 5.5% increase in October.
In the U.S., the Commerce Department said that retail sales rose by a seasonally adjusted 0.2% last month, beating expectations for a 0.1% increase. Retail sales for November were revised down to a 0.4% gain from a previously reported increase of 0.7%.
Core retail sales, which exclude automobile sales, edged up 0.7% last month, above forecasts for a 0.4% increase. Core sales rose by 0.1% in November.
Sterling was also higher against the euro, with EUR/GBP shedding 0.25% to 0.8323.
Also Tuesday, Eurostat said industrial production in the euro zone increased by 1.8% in November, beating expectations for a 1.4% gain. Industrial production in October was revised to a 0.8% decline, compared to a previously reported drop of 1.1%.