The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.9750 level and was supported around the $1.9640 level. The pair reached its highest level since 5 February. Data released in the U.K. today saw YouGov February consumer inflation expectations index indicate consumer expect inflation of 3.1% over the next twelve months, down from 3.3% in January. Bank of England Deputy Governor Lomax today warned that an increase in inflation expectations would reduce the Monetary Policy Committee’s ability to reduce interest rates. MPC member Besley said he is largely agnostic in terms of (whether higher inflation or lower growth risks) are dominant at this point. Data released in the U.K. today saw CBI February sales volumes index come in weaker-than-expected at -3 from +4 in January – the first negative print since November 2006. Cable bids are cited around the US$ 1.9590/ 1.9260 levels. The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ₤0.7550 level and were supported around the ₤0.7515 level.