The British pound weakened vis-Ã -vis the U.S. dollar today as cable tested bids around the US$ 1.9650 level and was capped around the $1.9755 level. Technically, todayâ€™s intraday low was right around the 76.4% retracement of the move from $1.9170 to $2.1160. Traders await Thursdayâ€™s interest rate decision from Bank of Englandâ€™s Monetary Policy Committee. One school of thought suggests MPC policymakers will cut the repo rate by 25bps while another school of thought believes MPC officials will not cut now but look to cut in Q1. A CBI financial services sector survey reported the U.K. financial services sector decelerated in Q4. Prime Minister Brown called for renewed discipline on wage negotiations. Tomorrowâ€™s BRC retail sales monitor will offer clues about the U.K. holiday shopping period. Cable bids are cited around the US$ 1.9590 level. The euro appreciated vis-Ã -vis the British pound as the single currency tested offers around the ₤0.7480 level and was supported around the ₤0.7440 level.
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