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Forex - GBP/USD slips on U.S. inflation data, Bank of England minutes

Published 10/22/2014, 12:54 PM
Updated 10/22/2014, 12:55 PM
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Investing.com - The pound softened against the dollar on Wednesday after U.S. inflation data met expectations while the Bank of England minutes reflected no change to monetary policy.

In U.S. trading on Wednesday, GBP/USD was down 0.26% at 1.6072, up from a session low of 1.6012 and off a high of 1.6131.

Cable was likely to find support at 1.5873, last Wednesday's low, and resistance at 1.6186, Tuesday's high.

The U.S. Labor Department reported earlier that consumer prices rose 0.1% in September, meeting estimates and following a 0.2% decline in August, which sent investors flocking to the greenback.

Core consumer prices, which exclude food and energy costs, rose 0.1% in September, disappointing expectations for a 0.2% gain. Core consumer prices were flat in August, though the overall report confirmed market expectations for the Federal Reserve to make monetary policy less accommodating going forward.

The minutes of the BoE's October policy meeting released earlier revealed that members voted unanimously to keep the asset purchase facility program on hold.

However, members Martin Weale and Ian McCafferty voted for the third consecutive time to raise interest rates to 0.75% from a record-low 0.5%, though the pound held lower against the dollar anyway.

Elsewhere, sterling was up against the euro, with EUR/GBP down 0.14% at 0.7881, and down against the yen, with GBP/JPY down 0.07% at 172.30.

On Thursday, the U.S. is to publish its weekly report on initial jobless claims.

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