The British pound appreciated sharply vis-Ã -vis the U.S. dollar today as cable tested offers around the US$ 2.0005 level and was supported around the $1.9845 level. Technically, todayâ€™s intraday high was right around the 38.2% retracement of the move from $1.9360 to $2.0395. The British media reported that Bank of England Governor King informed major money-center banks that he will follow the European Central Bankâ€™s lead in providing funding against a wider range of collateral but will not do so to the extent the Fed has done. BoE said it does not want to get involved in a situation where taxpayers â€“ and not the central bank â€“ assume credit risk. Cable bids are cited around the US$ 1.9880/ 1.9605 levels. The euro moved higher vis-Ã -vis the British pound as the single currency tested offers around the ₤0.7825 level and was supported around the ₤0.7750 level.
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