The British pound moved higher vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.4240 level and was supported around the $1.3925 level. Cable gained ground despite a gloomy report from U.K. retailers that saw the CBI monthly retail sales balance improve to -47 from 055 in December, albeit a better print than expected. Notably, however, the February outlook was the worst since 1983 at -52. Final private demand remains quite weak in the U.K. and most traders expect Bank of England Monetary Policy Committee will continue to ease interest rates in the near future. Business Secretary Mandelson is expected to announce new measures to support U.S. automakers soon. Cable offers are cited around the US$ 1.4615 level. The euro moved sharply lower vis-à-vis the British pound as the single currency tested bids around the ₤0.9280 level and was capped around the ₤0.9445 level.
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