The British extended recent losses vis-Ã -vis the U.S. dollar today as cable tested bids around the US$ 1.6095 level and was capped around the $1.6325 level. Sterling came off today on market speculation that Bank of England will announce an extension of its quantitative easing program on Thursday when the Monetary Policy Committee€™s interest rate decision is announced. Some traders believe the MPC may decided to purchase an additional ‚¤25 billion in government and other bonds as part of its credit easing program, adding to the ‚¤125 billion of the existing facility. Others believe the MPC could expand the program but will wait until August. The U.K. government is currently managing the public€™s expectations regarding public-sector pay awards. Prime Minister Brown reiterated policymakers €œcannot be complacent about the global economy.€ Cable bids are cited around the US$ 1.5845 level. The euro moved higher vis-Ã -vis the British pound as the single currency tested offers around the ‚¤0.8645 level and was supported around the ‚¤0.8550 level.
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