Forex - GBP/USD tumbles to 5-day low after mixed U.K. economic data

Published 10/12/2010, 05:27 AM
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Investing.com – The pound extended earlier losses against the U.S. dollar on Tuesday, falling to a fresh 5-day low, following the release of mixed U.K. economic data.

GBP/USD hit 1.5794 during European morning trade, the pair’s lowest since October 5; the pair subsequently consolidated at 1.5812, shedding 0.44%.

Cable was likely to find support at 1.5702, the low of October 1 and resistance at 1.5964, the high of October 8.

Earlier in the day, official data showed that U.K. consumer price inflation remained unchanged at 3.1% in September, in line with expectations and exceeding the government’s 3% target for a seventh month.

Elsewhere, a separate report showed that the country’s trade deficit rose unexpectedly in August. The Office for National Statistics said that the trade deficit widened to GBP 8.2 billion in August, after rising to GBP 8.7 billion in July. Economists had expected the trade deficit to contract to GBP 8.0 billion in August.

Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.10% to hit 0.8730.

Later in the day, the Fed was to publish the minutes of its September 21 meeting of the Federal Open Market Committee.

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