The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.6325 level and was supported around the $1.6250 level. Bank of England Monetary Policy Committee member Posen called for additional business lending while MPC member Barker said she does not expect the economy to gather steam in the first six months of the year. MPC member Sentance moved the markets today when he said At some point you have to say we have increased the amount of stimulus enough. It doesn't mean you are going to withdraw it but you don't have to keep adding to it. The Bank is approaching the point where we need to hold back and wait and see how that's flowing into the recovery. Data released in the U.K. yesterday saw November manufacturing production flat m/m and off 5.4% y/y while November industrial production was up 0.4% m/m and off 6% y/y. Cable bids are cited around the US$ 1.5730 level. The euro lost ground vis-à-vis the British pound as the single currency tested bids around the ?0.8880 level and was capped around the ?0.8935 level.
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