The British pound weakened vis-Ã -vis the U.S. dollar today as cable tested bids around the US$ 2.0530 level and was capped around the $2.0700 figure. Technically, todayâ€™s intraday high and low were right around the 38.2% and 50.0% retracement of the move from $1.9870 to $2.1160. Data released in the U.K. today saw the November manufacturing PMI survey improve to 54.4 from 52.8. Some traders believe these data may cause Bank of Englandâ€™s Monetary Policy Committee to not ease interest rates on Thursday and delay their rate cut to early 2008. Other data released today underscore the problems in the U.K. money markets as the volume of market loans in the banking system fell from ₤640 billion in August to ₤249 billion at the end of September. Cable bids are cited around the US$ 2.0365 level. The euro came off vis-Ã -vis the British pound as the single currency tested bids around the ₤0.7090 level and was capped around the ₤0.7135 level.
Join the Discussion