Investing.com - The pound slipped against the U.S. dollar on Monday, re-approaching 14-month lows after data showed a decline in U.K. house prices and as last week's remarks by the Bank of England continued to weigh.
GBP/USD hit 1.5620 durin European morning trade, the session low; the pair subsequently consolidated at 1.5632, shedding 0.25%.
Cable was likely to find support at 1.5504 and resistance at 1.5782, the high of November 13.
Industry data showed that U.K. house prices dropped 1.7% in November, after a 2.6% rise the previous month.
The report came after the Office for National Statistics reported on Friday that U.K. construction output rose 1.8% in September, below expectations for an increase of 3.7%.
The pound also remained under pressure after the Bank of England said last Wednesday that inflation is likely remain below its 2% target in the near term and fall below 1% at some point during the next six months.
The bank now expects inflation to take three years to return to its 2% target.
Meanwhile, sentiment on the dollar remained vulnerable after mixed U.S. data was released on Friday.
The preliminary reading of the University of Michigan’s consumer sentiment index rose to a seven year high of 89.4 on Friday, better than forecasts of 87.5 and up from October’s reading of 86.9.
However the report also showed that consumers expected annual inflation of 2.6% this year, down from expectations for inflation of 2.9% in October.
Sterling was steady against the euro, with EUR/GBP inching down 0.05% to 0.7990.
Later in the day, the U.S. was to release a report on manufacturing activity in the New York region, as well as data on industrial production.