Forex - GBP/USD trims losses ahead of key U.K. data

Published 09/14/2010, 04:13 AM
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Investing.com – The pound trimmed losses against the U.S. dollar on Tuesday, rebounding from a 2-day low, ahead of official government data on U.K. consumer price inflation.

GBP/USD hit 1.5401 during early European trade, shedding 0.19% after clawing back up from a 2-day low of 1.5347.

Cable was likely to find support at 1.5295, the low of September 7, and resistance at 1.5486, Monday’s high.

Late Monday, industry data showed that U.K. house prices fell for the second consecutive month, declining to its lowest level since May 2009.

In a report, the Royal Institution of Chartered Surveyors said its index of house prices plunged 32% in August, after falling 8% in July.
Analysts had expected the house price index to decline 11% in August.

Commenting on the report, RICS spokesperson Jeremy Leaf said, "The latest set of results suggest prices in many parts of the country may be slipping but this does appear to be encouraging hopes amongst surveyors that sales levels could begin to pick up as a result."

The pound was also down against the euro, with EUR/GBP gaining 0.27% to hit 0.8373.

Later in the day, the U.K. was to release official data on consumer price inflation.

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