The British pound depreciated vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.6250 level and was capped around the $1.6395 level. Sterling continued its correction lower after economic data released on Friday revealed the U.K.'s gross domestic product fell 0.4% in the third quarter, defying expectations of a 0.1% expansion. Traders reduced their exposure to sterling under the renewed premise Bank of England may need to expand its asset-purchasing program. Sterling had been bid over the past couple of weeks on the growing perception the central bank would be discontinuing or at least not enlarging its asset-purchasing program. BoE will publish its quarterly inflation report next month and its quantitative easing program will surely be revised by the MPC then. There is speculation the asset purchase program could balloon to ?250 billion from the current ?175 billion. BoE's next Monetary Policy Committee meeting will be held on 4-5 November. MPC member Posen dovishly said There is no evidence from relevant periods of U.K. or other major economies' history that quantitative easing will result in high or sustained inflation. Thus, high inflation is not what we should be worrying about...There are even indications that the recession - now a severe but normal one - is coming to an end. MPC member Miles said further quantitative easing decision will be dependent on inflationary pressures. Cable bids are cited around the US$ 1.6080 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the ?0.9095 level and was capped around the ?0.9240 level.