Investing.com – The pound erased gains against the U.S. dollar on Tuesday, retreating from a 3-week high as the dollar rallied after the release of better-than-expected U.S. data on retail sales and producer price inflation.
GBP/USD retreated from 1.5911, the pair’s highest since November 23 to hit 1.5758 during European afternoon trade, tumbling 0.64%.
Cable was likely to find support at 1.5657, the low of December 8 and resistance at 1.5840, the high of December 9.
Earlier in the day, the U.S. Census Bureau said that retail sales rose 0.8% in November, after rising by a revised 1.7% the previous month. Analysts had expected retail sales to increase by 0.5% in November.
Core retail sales, which exclude automobile sales, rose significantly more-than-expected, increasing by 1.2%, after rising by a revised 0.8% in October.
A separate report showed that PPI rose by a seasonally adjusted 0.8% in November, after rising by 0.4% the previous month. Analysts had expected PPI to increase by 0.5% in November.
Core PPI, which excludes food and energy costs, rose 0.3% after falling by 0.6% in October.
Later in the day, the Federal Reserve was to announce its federal funds rate and release its December rate statement.
The pound was also down against the euro, with EUR/GBP climbing 0.65% to hit 0.8498.
Earlier Tuesday, official data showed that U.K. consumer-price inflation unexpectedly accelerated in November, rising a percentage point above the Bank of England's 2% target for the 11th consecutive month.
The Office for National Statistics said the annualized rate of inflation was 3.3% last month, rising from 3.2% in October. In monthly terms, inflation rose 0.4% in November, up from 0.3% in October.
GBP/USD retreated from 1.5911, the pair’s highest since November 23 to hit 1.5758 during European afternoon trade, tumbling 0.64%.
Cable was likely to find support at 1.5657, the low of December 8 and resistance at 1.5840, the high of December 9.
Earlier in the day, the U.S. Census Bureau said that retail sales rose 0.8% in November, after rising by a revised 1.7% the previous month. Analysts had expected retail sales to increase by 0.5% in November.
Core retail sales, which exclude automobile sales, rose significantly more-than-expected, increasing by 1.2%, after rising by a revised 0.8% in October.
A separate report showed that PPI rose by a seasonally adjusted 0.8% in November, after rising by 0.4% the previous month. Analysts had expected PPI to increase by 0.5% in November.
Core PPI, which excludes food and energy costs, rose 0.3% after falling by 0.6% in October.
Later in the day, the Federal Reserve was to announce its federal funds rate and release its December rate statement.
The pound was also down against the euro, with EUR/GBP climbing 0.65% to hit 0.8498.
Earlier Tuesday, official data showed that U.K. consumer-price inflation unexpectedly accelerated in November, rising a percentage point above the Bank of England's 2% target for the 11th consecutive month.
The Office for National Statistics said the annualized rate of inflation was 3.3% last month, rising from 3.2% in October. In monthly terms, inflation rose 0.4% in November, up from 0.3% in October.