The British pound fell sharply vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.9555 level and was capped around the $1.9760 level. The pair has not been this weak since 30 March 2007. Traders are increasingly speculating Bank of England’s Monetary Policy Committee will reduce the headline repo rate by 25bps tomorrow. If no change is announced in policy tomorrow, Q1 remains the most likely scenario. Data released in the U.K. today saw BRC December annual shop price inflation recede to 1.0% while Nationwide reported consumer confidence fell last month to its lowest level since February 2007. Cable bids are cited around the US$ 1.9260 level. The euro appreciated vis-à-vis the British pound as the single currency tested offers around the ₤0.7500 figure and was supported around the ₤0.7445 level.