The British pound appreciated vis-Ã -vis the U.S. dollar today as cable tested offers around the US$ 1.9510 level and was supported around the $1.9405 level. Traders are still speculating as to how close the Bank of Englandâ€™s vote was yesterday to reduce the repo rate by 25bps. Data released in the U.K. today saw IDS pay awards average 4% in the three months to January, up from 3.3% in the quarter to December. These data support the view the BoE will be forced to reduce interest rates gradually. Traders await next Wednesdayâ€™s quarterly inflation report. NIESR reported U.K. growth fell below its trend growth rate in the three months to January. Moreover, it was reported that Q4 mortgage repossession orders were up 6% y/y in England and Wales. Cable bids are cited around the US$ 1.9260 level. The euro weakened vis-Ã -vis the British pound as the single currency tested bids around the ₤0.7425 level and was capped around the ₤0.7455 level.
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