The British pound rallied sharply vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.9705 level and was supported around the $1.9610 level. Cable has been bid since Wednesday’s North American session on increasing speculation Bank of England’s Monetary Policy Committee will not be as aggressive in lowering interest rates on account of resurgent retail sales and heightened inflation risks. Data released in the U.K. today saw IRS January pay deals remain steady at 3.5% in the three months to January. Cable bids are cited around the US$ 1.9260 level. The euro weakened vis-à-vis the British pound tested bids around the ₤0.7520 level and was capped around the ₤0.7555 level.