GBP/USD Fundamental Outlook at 1500 GMT (EST + 0500)

The British pound moved higher vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.6245 level and was supported around the $1.6105 level.  Sterling shook off weaker-than-expected CBI January distributive trades data that saw the retail trades survey print at -8, down from +13 in December.  Sterling picked up ground on comments from Bank of England Monetary Policy Committee member Sentance who said it will be difficult to keep inflation on target given sterling's depreciation.  He also said data suggests the U.K. economy expanded more in Q4 than reported at +0.1%.  Cable bids are cited around the US$ 1.6030 level.  The euro moved lower vis-à-vis the British pound as the single currency tested bids around the ?0.8655 level and was capped around the ?0.8730 level.