Investing.com – The pound was up against the U.S. dollar on Tuesday, testing a key resistance at 1.5700, ahead of the release of key U.K. data on inflation.
GBP/USD hit 1.5696 during European morning trade, a daily high; the pair subsequently consolidated at 1.5661, gaining 0.02%.
Cable was likely to find support at 1.5534, Monday's low and resistance at 1.5713, the high of August 12.
Later in the day, Bank of England governor Mervyn King was to publish an open letter to the government if the level of inflation breached the 2.0% target the bank has put in place.
Mr. King has argued that the higher rate of inflation is temporary and will normalize as the U.K. economy recovers fully from the effects of the recent global recession.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.34% to hit 0.8214.
Later in the day, the U.S. was to produce data on producer price inflation. The country was also to produce data on building permits and housing starts.
GBP/USD hit 1.5696 during European morning trade, a daily high; the pair subsequently consolidated at 1.5661, gaining 0.02%.
Cable was likely to find support at 1.5534, Monday's low and resistance at 1.5713, the high of August 12.
Later in the day, Bank of England governor Mervyn King was to publish an open letter to the government if the level of inflation breached the 2.0% target the bank has put in place.
Mr. King has argued that the higher rate of inflation is temporary and will normalize as the U.K. economy recovers fully from the effects of the recent global recession.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.34% to hit 0.8214.
Later in the day, the U.S. was to produce data on producer price inflation. The country was also to produce data on building permits and housing starts.