Investing.com - The pound edged lower against the U.S. dollar on Tuesday, after the release of disappointing inflation data from the U.K., although comments by a Federal Reserve official limited the greenback’s gains.
GBP/USD hit 1.3298 during European morning trade, the session low; the pair subsequently consolidated at 1.3317, slipping 0.14%.
Cable was likely to find support at 1.3234, Monday’s low and resistance at 1.3440, the high of September 7.
The U.K. Office for National Statistics said the consumer price index came in at an annualized rate of 0.6% last month, compared to expectations for a 0.7% rise.
Month-over-month, consumer prices rose 0.3% in August, compared to estimates for a gain of 0.4%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by 1.3% last month, unchanged from July and compared to forecasts for a reading of 1.4%.
Meanwhile, the greenback remained under pressure after Fed Governor Lael Brainard warned against raising interest rates too quickly.
In a speech on Monday, Brainard says economic progress continues in the U.S., but the Fed would be wise to continue keeping policy loose.
The comments came after Boston Fed President Eric Rosengren said on Friday that low interest rates are increasing the chance of overheating the U.S. economy.
Sterling was also lower against the euro, with EUR/GBP edging up 0.19% to 0.8441.