Forexpros – The pound extended gains against the U.S. dollar on Tuesday, rising to a two-week high, after official data showed that consumer price inflation in the U.K. rose unexpectedly in July.

GBP/USD hit 1.5727 during European morning trade, the pair’s highest since July 31; the pair subsequently consolidated at 1.5713, gaining 0.18%.

Cable was likely to find support at 1.5604, the low of August 9 and near-term resistance at 1.5766, the high of July 27.

The Office for National Statistics said the rate of consumer price inflation accelerated to a seasonally adjusted 2.6% in July from 2.4% the previous month.

Analysts had expected CPI to ease slightly to 2.3%.

Month-over-month, consumer price inflation rose 0.1%, compared to expectations for a 0.1% decline, after falling 0.4% in June.

Markets were looking ahead to data on second quarter economic growth from the euro zone later in the session.

Earlier in the day, official data showed that Germany’s economy expanded by 0.3% in the second quarter, slightly better than expectations for 0.2% growth, after expanding by 0.5% in the three months to March.

Market sentiment remained supported as recent evidence of a slowdown in global growth underpinned expectations that world central banks will implement more easing measures to spur the economic recovery.

The pound was slightly lower against the euro, with EUR/GBP up 0.13% to 0.7872.

Later Tuesday, the U.S. was to publish official data on retail sales and producer price inflation.

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