Investing.com – The pound extended losses against the U.S. dollar on Wednesday, tumbling to a fresh 8-day low after official data showed that U.S. consumer price inflation rose in November.
GBP/USD hit 1.5622 during European afternoon trade, the pair’s lowest since December 3; the pair subsequently consolidated at 1.5638, tumbling 0.85%.
Cable was likely to find support at 1.5580, the low of December 3 and resistance at 1.5822, the high of December 7.
The Bureau of Labor Statistics said that core consumer prices, less food and energy rose in line with expectations in November, increasing by 0.10%, up from a flat reading in October.
Consumer prices, including food and energy costs rose less-than-expected in November, increasing by a seasonally adjusted 0.1%. Analysts had expected consumer price inflation to rise by 0.2% in November.
Year-on-year, consumer prices rose by 1.1% in November, after rising by 1.2% in October.
A separate report showed that the New York Federal Reserve’s index of manufacturing conditions rose significantly more-than-expected in December.
Also Wednesday, official data showed that the number of people claiming unemployment benefits in the U.K. fell less-than-expected in November, while the unemployment rate rose unexpectedly in the third quarter.
The pound was also down against the euro, with EUR/GBP surging 0.64% to hit 0.8534.
Later in the day, the U.S. was to publish official data on industrial production.
GBP/USD hit 1.5622 during European afternoon trade, the pair’s lowest since December 3; the pair subsequently consolidated at 1.5638, tumbling 0.85%.
Cable was likely to find support at 1.5580, the low of December 3 and resistance at 1.5822, the high of December 7.
The Bureau of Labor Statistics said that core consumer prices, less food and energy rose in line with expectations in November, increasing by 0.10%, up from a flat reading in October.
Consumer prices, including food and energy costs rose less-than-expected in November, increasing by a seasonally adjusted 0.1%. Analysts had expected consumer price inflation to rise by 0.2% in November.
Year-on-year, consumer prices rose by 1.1% in November, after rising by 1.2% in October.
A separate report showed that the New York Federal Reserve’s index of manufacturing conditions rose significantly more-than-expected in December.
Also Wednesday, official data showed that the number of people claiming unemployment benefits in the U.K. fell less-than-expected in November, while the unemployment rate rose unexpectedly in the third quarter.
The pound was also down against the euro, with EUR/GBP surging 0.64% to hit 0.8534.
Later in the day, the U.S. was to publish official data on industrial production.