The British pound appreciated vis-Ã -vis the U.S. dollar today as cable tested offers around the US$ 1.9610 level and was supported around the $1.9440 level. The pair hit stops above the $1.9605 level, representing the 38.2% retracement of the move from $1.9955 to $1.9385. Data released in the U.K. today saw January consumer price inflation up an annualized 2.2%, above Decemberâ€™s 2.1% print but below the 2.3% estimate. Bank of England is currently in a monetary easing cycle and CPI numbers above 2.0% make it difficult for policymakers to justify substantial monetary easing. Other data released today saw CML report that U.K. mortgage affordability worsened in December. Also, BRC January like-for-like retail sales expanded 2.6% and Lloyds TSB reported U.K. firmsâ€™ confidence has fallen to a five-year low. Cable bids are cited around the US$ 1.9260 level. The euro gained marginal ground vis-Ã -vis the British pound as the single currency tested offers around the ₤0.7460 level and was supported around the ₤0.7425 level.
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