The British pound moved appreciated sharply vis--vis the U.S. dollar today as cable tested offers around the US$ 1.9890 level and was supported around the $1.9650 level. Data released in the U.K. today saw March factory gate prices escalate at their fastest rate since April 1991, up 0.9% m/m and an annualized 6.2% from 5.9% in February. The increase in producer prices renders it more difficult for Bank of England to reduce interest rates. Prime Minister Brown announced he will meet business leaders tomorrow to discuss ongoing financial market dislocations ahead of a trip to the U.S. Cable bids are cited around the US$ 1.9605 levels. The euro came off vis--vis the British pound as the single currency tested bids around the ₤0.7960 level and was capped around the ₤0.8010 level.
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