Investing.com - The pound trimmed gains against the U.S. dollar on Tuesday, ahead of the release of U.K. data on inflation, while markets awaited testimony by Federal Reserve Chairman Ben Bernanke later in the day.
GBP/USD pulled back from 1.5678, the pair’s highest since July 4, to hit 1.5642 during early European trade, up just 0.05%.
Cable was likely to find support at 1.5516, Monday’s low and resistance at 1.5712, the high of July 3.
The pound came under selling pressure as investors’ awaited U.K. data on consumer price inflation, amid concerns over the outlook for economic growth.
On Monday, the International Monetary Fund said that the outlook for growth in the U.K. had deteriorated more than any other G8 nation over the past three months, when it released its economic forecasts.
The IMF said it expects the U.K. economy to expand by just 0.2% this year, down from 0.8% in April and by 1.4% in 2013.
But sterling remained supported ahead of testimony to the Senate by Fed Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate the economy.
Expectations for another round of quantitative easing to stimulate growth were boosted on Monday after official data showing a third consecutive monthly decline in U.S. retail sales in June.
Sterling came off a three-and-a-half year high against the euro, with EUR/GBP easing up 0.11% to 0.7857.
Later Tuesday, the U.S. was to publish official data on consumer price inflation, as well as reports on the capacity utilization rate and industrial production.
GBP/USD pulled back from 1.5678, the pair’s highest since July 4, to hit 1.5642 during early European trade, up just 0.05%.
Cable was likely to find support at 1.5516, Monday’s low and resistance at 1.5712, the high of July 3.
The pound came under selling pressure as investors’ awaited U.K. data on consumer price inflation, amid concerns over the outlook for economic growth.
On Monday, the International Monetary Fund said that the outlook for growth in the U.K. had deteriorated more than any other G8 nation over the past three months, when it released its economic forecasts.
The IMF said it expects the U.K. economy to expand by just 0.2% this year, down from 0.8% in April and by 1.4% in 2013.
But sterling remained supported ahead of testimony to the Senate by Fed Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate the economy.
Expectations for another round of quantitative easing to stimulate growth were boosted on Monday after official data showing a third consecutive monthly decline in U.S. retail sales in June.
Sterling came off a three-and-a-half year high against the euro, with EUR/GBP easing up 0.11% to 0.7857.
Later Tuesday, the U.S. was to publish official data on consumer price inflation, as well as reports on the capacity utilization rate and industrial production.