NEW YORK (Forex News Now) – The pound pared earlier losses against the dollar on Tuesday, after official data showed that air fares, rising food bills and price mark-ups on clothes kept Britain’s inflation rate high at 3.1% in August.
In European morning currency market trading, GBP/USD hit 1.5412, down 0.11 percent on the day.
The figures released earlier by the Office for National Statistics defied analysts expectations that the Consumer Price Index would decrease to 2.9 percent year-on-year in August.
According to GBP USD analysis, cable was likely to touch support around the low of Sept. 7, 1.5297, and encounter immediate resistance around the high of Sept. 8, 1.5533.
Sterling’s losses also came as FX traders’ risk appetite was dented by disappointing economic data from Germany: The Mannheim-based ZEW think tank said earlier that its monthly poll of German economic sentiment fell to -4.3 during the month, down from 14 in August.
Elsewhere, the pound also fell versus the yen: GBP/JPY traded at 128.44, down 0.55 percent, according to intraday analysis.