Sterling plumbs two-week low against dollar

Sterling tilted lower against the dollar in American trade to the lowest since November 28, following an array of data from Britain and the US, while the Federal Open Market Committee starts its two-day policy meeting in Washington.

As of 04:58 GMT, GBP/USD fell 0.10% to 1.3328 from the opening of 1.3341, with a two-week low at 1.3311, and a high at 1.3380. 

Earlier UK data showed consumer prices accelerated to 0.3% from 0.1% in October, while accelerating to 3.1% y/y from 3.0%, as core prices steadied at 2.7% in line with expectations. 

Input producer prices accelerated as well to 1.8% from 1.0% in October, beating forecasts of 1.5%, while on a yearly basis, prices jumped 7.3% from 4.8% in the previous reading, beating forecasts of 6.7%. 

Otherwise, earlier US data showed producer prices rose 0.4% in November in line with expectations and with no change from October's reading, while core prices, excluding food and fuel, rose 0.3%, beating expectations of 0.2% and just below October's 0.4% rise. 

Now markets look upon the FOMC's last 2017 meeting today and tomorrow, with policymakers expected to unveil their three-year forecasts for inflation, growth, unemployment, and interest rates, while expected to also hike rates by 25 basis points for the third time this year.