Forex Pros – The pound extended losses against the U.S. dollar on Tuesday, falling to a five-day low, following an unexpected decline in the rate of U.K. consumer price inflation, which dampened expectations for a near-term rate hike by the Bank of England. GBP/USD hit 1.6228 during European early afternoon trade, the pair’s lowest since April 5; the pair subsequently consolidated at 1.6264, shedding 0.49%. Cable was likely to find support at 1.6090, the low of April 5 and resistance at 1.6425, Tuesday’s high and a 15-month high. The Office for National Statistics said consumer price inflation rose by 4.0% last month, its lowest annual rate of increase since January and the first fall in the CPI rate since July last year. Analysts had expected the annual rate to hold steady at 4.4%, a 28-month high reached in February. A separate report said that Britain's trade deficit unexpectedly narrowed in February to its smallest since February 2010 at GB6.7 billion. Economists had forecast a deficit of GBP8.1 billion. The pound was also lower against the euro, with EUR/GBP surging 0.67% to hit 0.8891. Also Tuesday, U.K. industry data showed that retail sales fell at their fastest annual pace in nearly six years and house prices slipped in March.

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