The British pound strengthened sharply vis-à-vis the U.S. dollar today cable tested offers around the US$ 1.9740 level and was supported around the $1.9525 level. Technically, today’s intraday high was right around the 38.2% retracement of the move from $2.0100 to $1.9485. Sterling moved higher on December consumer price inflation data that saw price pressures remain stable at 2.1% for the third consecutive month, denting expectations BoE’s MPC will reduce interest rates in February. Like other central banks, the BoE is faced with decelerating economic growth and elevated price pressures. Cable bids are cited around the US$ 1.9260 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the ₤0.7525 level and was capped around the ₤0.7610 level.