Investing.com - The pound extended losses against the U.S. dollar on Tuesday, re-approaching an 11-month trough after data showed that U.K. inflation data slowed to a five-year low last month, while global growth concerns continued to support demand for the safe-haven greenback.
GBP/USD hit 1.5978 during European morning trade, the pair's lowest since October 6; the pair subsequently consolidated at 1.5973, retreating 0.69%.
Cable was likely to find support at 1.5941, the low of October 6 and an 11-month low resistance at 1.6128, Monday's high.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation slowed to 1.2% last month from 1.5% in August. Analysts had expected U.K. CPI to fall to 1.4% in September.
Month-over-month, consumer price inflation was flat in September, after rising 0.4% in August.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a rate of 1.5% last month, down from 1.9% in August. Analysts had expected core prices to rise 1.8% in September.
Meanwhile, demand for the dollar remained supported by global growth worries after the International Monetary Fund cut its forecasts for global growth in 2014 and 2015 and warned that global growth may never reach its pre-crisis levels ever again.
Recent data from Germany indicating unexpected weakness in manufacturing and exports also added to concerns, as well as signs of uneven growth in China.
Markets were also jittery amid the widening Ebola epidemic. The U.K. announced on Monday that it will begin conducting fever tests for Ebola at Heathrow airport, after Health Secretary Jeremy Hunt says it is likely that tge virus will be diagnosed in the U.K. by end of year.
Elsewhere, sterling was also lower against the euro, with EUR/GBP adding 0.16% to 0.7941.