Investing.com – The pound pared early gains against the U.S. dollar on Tuesday, retreating from a 3-week high ahead of the Federal Reserve’s decision on interest rates due later in the day.
GBP/USD retreated from 1.5911, the pair’s highest since November 23 to hit 1.5868 during European early afternoon trade, gaining 0.04%.
Cable was likely to find support at 1.5746, last Friday’s low and resistance at 1.5964, the high of November 23.
Earlier in the day, 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.
The report said that increases in food, clothing, furniture and furnishings costs were the key drivers behind the increase in annual inflation.
Core consumer-price inflation, which excludes volatile food, energy, alcohol and tobacco costs, was steady at 2.7% in November. In monthly terms, it rose 0.2%, following a 0.1% gain in October.
Meanwhile, the pound was down against the euro, with EUR/GBP climbing 0.48% to hit 0.8483.
Later in the day, the U.S. was to release official data on retail sales and producer price inflation. In addition, the Federal Reserve was to announce its federal funds rate.
GBP/USD retreated from 1.5911, the pair’s highest since November 23 to hit 1.5868 during European early afternoon trade, gaining 0.04%.
Cable was likely to find support at 1.5746, last Friday’s low and resistance at 1.5964, the high of November 23.
Earlier in the day, 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.
The report said that increases in food, clothing, furniture and furnishings costs were the key drivers behind the increase in annual inflation.
Core consumer-price inflation, which excludes volatile food, energy, alcohol and tobacco costs, was steady at 2.7% in November. In monthly terms, it rose 0.2%, following a 0.1% gain in October.
Meanwhile, the pound was down against the euro, with EUR/GBP climbing 0.48% to hit 0.8483.
Later in the day, the U.S. was to release official data on retail sales and producer price inflation. In addition, the Federal Reserve was to announce its federal funds rate.