The British pound moved lower vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.5533 level and was capped around the $1.5625 level. Chancellor of the Exchequer Darling reported he fully supports Bank of England's asset purchase pause that was announced on Thursday, adding the U.K. gilt market responded well. BoE has recently announced the weaker pound has benefited the U.K. economy. The central bank will publish its quarterly inflation report and new economic forecasts on Wednesday. In November, the central bank estimated 2010 economic growth of 2.2%, rallying to 4.1% in 2011. Most BoE-watchers believe the central bank will reduce its growth forecast this week and will likely see inflation around 2% in two years. Cable bids are cited around the US$ 1.5340 level. The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ?0.8795 level and was supported around the ?0.8730 level.
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