The British pound depreciated vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.6270 level and was capped around the $1.6355 level. Data released in the U.K. today saw the November leading indicator index decline 0.9%. Bank of England Monetary Policy Committee member this Posen called for additional business lending while MPC member Barker said she does not expect the economy to gather steam in the first six months of the year. Barker also indicated she sees first half growth prospects as patchy. MPC member Sentance moved the markets this week when he said At some point you have to say we have increased the amount of stimulus enough. It doesn't mean you are going to withdraw it but you don't have to keep adding to it. The Bank is approaching the point where we need to hold back and wait and see how that's flowing into the recovery. Data released in the U.K. this week saw November manufacturing production flat m/m and off 5.4% y/y while November industrial production was up 0.4% m/m and off 6% y/y. Cable bids are cited around the US$ 1.5730 level. The euro lost ground vis-à-vis the British pound as the single currency tested bids around the ?0.8810 level and was capped around the ?0.8880 level.
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