Sterling rebounds from 20-month low against dollar

Sterling tilted higher in American trade off April 2017 lows versus the dollar, following a stream of data from Britain and the US today. 

As of 04:33 GMT, GBP/USD rose 0.20% to 1.2664, with an intraday high at 1.2679, and a low at 1.2607. 

Earlier UK data showed consumer prices rose 0.2% as expected, up from 0.1% in October, while rising 2.2% y/y, beating estimates of 1.8%. 

Input producer prices fell 2.3% m/m in November, still beating estimates of a 2.8% drop, while rising 5.6% y/y, slowing down sharply from 10.3%. 

UK Prime Minister Theresa May said her government is still working with the European Union to get the guarantees sought by the Parliament, adding she'll reveal the results of the current talks with the EU at the start of next year, with a Parliament vote subsequent to that. 

Otherwise, earlier US data showed the current trade deficit rose to $125 billion as expected from $101 billion in the second quarter. 

US existing home sales rose 1.9% in November to an annualized 5.32 million units from 5.22 million in October, beating expectations of a 0.4% drop to 5.20 million. 

The Federal Open Market Committee is wrapping up its two-day policy meeting today, with analysts expected the fourth rate hike of the year to below 2.25%. 

The Fed will also release three-year forecasts for growth, inflation, unemployment, and interest rates.