Sterling slides to ten-month trough against dollar

Sterling fell in American trade to September 5 lows against the dollar, following earlier data from Britain and the US, while Federal Reserve Chair Jerome Powell wrapped up the second half of his Congressional testimony today, at which he reiterated his belief in the strong performance of US economy. 

As of 05:24 GMT, GBP/USD declined 0.39% to 1.3064 from the opening of 1.3115, with an intraday high at 1.3120, and a ten-month low at 1.3010.

UK Inflation Data 

Earlier UK data showed consumer prices unchanged in June, compared to a 0.4% rise in May, and missing estimates of 0.2%, while climbing 2.4% on a yearly basis, missing estimates of 2.6%. 

Core consumer prices rose 1.9% y/y, slowing down from 2.1%. 

Input producer prices rose 0.2% m/m, slowing down from 3.3% in May, and missing estimates of 0.4%, while accelerating to 10.0% on a yearly basis, up from 9.6% and missing expectations of 10.1%. 

UK House Price Index rose 3.0% y/y in May, slowing down from 3.5% in April, and missing estimates of 3.7%. 

US Housing Data 

Earlier US data showed housing starts fell 12.3% to an annualized 1.173 million units in June, compared to a 4.8% rise in May to 1.337 million, while analysts expected a 4.8% rise to 1.320 million. 

Building permits fell 2.2% to 1.273 million, compared to a 4.6% drop in May to 1.301 million, while analysts expected a 2.2% rise to 1.330 million.