The British pound appreciated vis-Ã -vis the U.S. dollar today as cable tested offers around the US$ 1.6575 level and was supported around the $1.6425 level. Many data were released in the U.K. today. First, the M4 money supply was up an revised 0.2% m/m and 16.6% y/y in May. Second, it was reported that U.K. net mortgage lending reached a record low in May. Net lending growth to individuals fell to ‚¤600 million from ‚¤1.1 billion. U.K. banks have not increased their lending activities significantly deposit ‚¤125 billion in fresh liquidity from Bank of England and capital injections from the government. CBI reported the U.K.€™s financial services sector will likely improve in the third quarter after 21 months of contraction. Cable bids are cited around the US$ 1.6125 level. The euro moved lower vis-Ã -vis the British pound as the single currency tested bids around the ‚¤0.8475 level and was capped around the ‚¤0.8525 level.
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