The British pound fell sharply vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.9655 level and was capped around the $1.9940 level. Technically, today’s intraday low was right around the 50.0% retracement of the move from $1.9335 to $1.9955. Data released in the U.K. today saw the January CIPS headline manufacturing survey fall to 50.6 from 52.9 in December. In contrast, however, the output prices sub-index spiked to 57.9, its highest level since the survey began in 1999 and input prices increased to 69.3. Today’s data suggest an important component of the U.K. economy is slowing but price pressures continue to escalate. This may render it more difficult for the Bank of England to decrease interest rates over an extended period if time, especially as second-round price pressures may potentially be increasing. Some traders believe BoE’s MPC may lower interest rates next week. Cable bids are cited around the US$ 1.9640/ 1.9260 levels. The euro appreciated vis-à-vis the British pound as the single currency tested offers around the ₤0.7545 level and was supported around the ₤0.7460 level.