The British pound came off vis-Ã -vis the U.S. dollar today as cable tested bids around the US$ 1.3985 level and was capped around the $ 1.4155 level. Traders are poised for another interest rate cut from Bank of England€™s Monetary Policy Committee on Thursday. More importantly, however, traders expect BoE will announce plans to conduct unstertilized asset purchases and expand its balance sheet. This would be similar to the Fed€™s massive credit easing and will be designed to steer market interest rates lower, especially in the asset-backed commercial paper market. CBI today reported 60% of companies have seen the availability of credit worsen. Also, it was reported that U.K. February construction PMI worsened to 27.8. Cable bids are cited around the US$ 1.3340 level. The euro moved higher vis-Ã -vis the British pound as the single currency tested offers around the ‚¤0.8995 level and was supported around the ‚¤0.8930 level.
Join the Discussion