The British pound moved sharply higher vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.6245 level and was supported around the $1.6090 level. BRC's headline consumer confidence index rose to +77 in December from +75 in October and +72 in June but half of respondents believe the economy will remain in a recession at the end of 2010. Prime Minister Brown today said his government will not reduce spending in 2010 and said the Tories' plan to do so would put the economic recovery at risk. Bank of England Governor King is expected to speak tomorrow. Cable bids are cited around the US$ 1.6030 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the ?0.8730 level and was capped around the ?0.8795 level.
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