The British pound appreciated vis-Ã -vis the U.S. dollar today as cable tested offers around the US$ 1.3840 level and was supported around the $1.3655 level. Bank of England purchased ‚¤2 billion in gilts today as the first part of its quantitative easing strategy that was announced last week. BoE is likely to purchase up to ‚¤75 billion in gilts and corporate debt over the next three months and this effectively means money is being printed. Prime Minister Brown will meet banking chief executives on 24 March ahead of the G20 summit it London on 2 April. Data released in the U.K. today saw the January trade deficit worsen to -‚¤7.7 billion from -‚¤7.2 billion in December. Cable bids are cited around the US$ 1.3470 level. The euro moved higher vis-Ã -vis the British pound as the single currency tested offers around the ‚¤0.9300 figure and was supported around the ‚¤0.9190 level.
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