The British pound depreciated vis-Ã -vis the U.S. dollar today as cable tested bids around the US$ 1.4470 level and was capped around the $1.4490 level. Sterling fell sharply after the U.K. government reported it plans to issue significantly more debt this fiscal year than was expected. The government plans to raise ‚¤220 billion in the 2009-2010 fiscal year, above the previous forecast of ‚¤180 billion. Data released in the U.K. today saw the jobless rate reach a 12-year high as claims jumped 73,700 while CML mortgage lending was off 52% y/y to ‚¤11.5 billion. Minutes from Bank of England€™s April Monetary Policy Committee meeting evidenced a unanimous vote to adhere to its plan to purchase ‚¤75 billion in bonds. Additionally, it was reported March public sector net borrowing reached a record ‚¤19.1 billion. Cable bids are cited around the US$ 1.4350 level. The euro strengthened vis-Ã -vis the British pound as the single currency tested offers around the ‚¤0.8985 level and was supported around the ‚¤0.8810 level.
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