Investing.com - The pound slipped lower against the U.S. dollar on Tuesday, after data showed that consumer price inflation in the U.K. slowed to the lowest level since records began in February
GBP/USD hit 1.4918 during European morning trade, the session low; the pair subsequently consolidated at 1.4931, edging down 0.14%.
Cable was likely to find support 1.4837, Monday's low and resistance at 1.5148, the high of March 18.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation decelerated to 0.0% last month from 0.3% in January, compared to expectations for a 0.1% reading.
Month-over-month, consumer price inflation increased 0.3% in February, in line with expectations and after dropping 0.9% in January.
Bank of England Governor Mark Carney will now have to write an open letter to the Chancellor of the Exchequer, George Osborne, as inflation is more than a percentage point below the central bank's target of 2.0%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at rate of 1.2% last month, down from 1.4% in January and below forecasts for a reading of 1.3%.
The report also showed that U.K. house prices index rose 8.4% in January, below forecasts for a gain of 10.2% and down from 9.8% in December.
Meanwhile, sentiment on the dollar remained vulnerable amid uncertainty over the path of U.S. monetary policy after the Federal Reserve downgraded its forecasts for growth and inflation and lowered its interest rate projections last week.
The pound was also lower against the euro, with EUR/GBP rising 0.31% to 0.7343.
The single currency found support after data earlier showed that manufacturing activity in the euro zone expanded at the fastest pace in ten months in March.
Market research group Markit reported that its preliminary manufacturing purchasing managers’ index rose to 51.9 this month from a final reading of 51.0 in February. Analysts had expected the index to ease up to 51.5 in March.
Meanwhile, the bloc's preliminary services purchasing managers’ improved to a 46-month high of 54.3 this month from 53.7 in February and above expectations for a reading of 53.9.
Later in the day, the U.S. was to release reports on consumer inflation and new home sales.