Investing.com - The pound slid against the dollar on Wednesday after investors remained camped out in greenback decisions ahead of the release of the Federal Reserve's statement on monetary policy later in the session, which many bet will contain an upbeat take on the economy.
In U.S. trading on Wednesday, GBP/USD was down 0.55% at 1.5663, up from a session low of 1.5640 and off a high of 1.5754.
Cable was likely to find support at 1.5599, Monday's low, and resistance at 1.5787, Tuesday's high.
The Federal Reserve is not seen raising interest rates until 2015, but many investors bet Wednesday's statement will scrap language suggesting that borrowing costs will remain low for a considerable amount of time, which gave the greenback support.
Investors shrugged off lackluster inflation data.
The Department of Labor reported earlier that the U.S. consumer price index fell 0.3% last month, outpacing estimates for a decline of 0.1% and down from a flat reading in October.
Consumer prices were 1.3% higher on a year-over-year basis, just shy of expectations for a 1.4% reading after a 1.7% increase in October.
Core consumer inflation, which strips out volatile food and energy components, was up 0.1% from a month earlier and rose at an annual rate of 1.7%. Economists had forecast a monthly increase of 0.1% and an annual gain of 1.8%.
The data did little to sway widespread market expectations for U.S monetary policy to grow less accommodative in 2015.
Meanwhile in the U.K., the Office for National Statistics reported earlier that the unemployment rate held steady at 6.0% in the three months to October, beating expectations for a tick down to 5.9%.
The number of people in the U.K. claiming unemployment benefits fell by 26,900 last month, compared to expectations for a decline of 21,200.
October’s figure was revised to a drop of 25,100 people from a previously reported decline of 20,400.
The report also said that average earnings, excluding bonuses, rose by 1.6%, ahead of forecasts for a gain of 1.5%, while salary growth including bonuses rose by a stronger than forecast 1.4%
Separately, the minutes of the Bank of England's December policy meeting showed that members voted unanimously to keep the asset purchase facility program on hold.
However, members Martin Weale and Ian McCafferty voted for the fifth consecutive time to raise interest rates to 0.75% from a record-low 0.5%.144
Elsewhere, sterling was up against the euro, with EUR/GBP down 0.23% at 0.7926, and up against the yen, with GBP/JPY up 0.55% at 184.35.
On Thursday, the U.S. is to release data on initial jobless claims and manufacturing activity in the Philadelphia region.
The U.K. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.