The British pound came off vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.4110 level and was capped around the $ 1.4325 level. It was reported the U.K. government will be increasing its stake in Royal Bank of Scotland to 84%. Most traders believe Bank of England’s Monetary Policy Committee will ease interest rates next Thursday. Additionally, traders expect the central bank will be granted operational authority from the government to monetize its balance sheet to finance asset purchases, a credit easing policy akin to recent policy directives from the Federal Reserve. Many dealers the London G20 meeting in April will be a seminal event for the global economy. Cable bids are cited around the US$ 1.2330 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the ₤0.8875 level and was capped around the ₤0.8945 level.
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