The British pound moved sharply lower vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.5600 figure and was capped around the $1.5765 level.  Bank of England released its quarterly inflation report today and noted inflation remains low in the U.K. and added the strength of the economic recovery of the U.K. economy remains highly uncertain.  Notably, BoE Governor King reported economic growth has decelerated from November 2009 but said Q4 GDP numbers could be upwardly revised.  Specifically on the inflation front, the central bank said inflation could move above 3% this year but added it should moderate within two years.  King also noted it is too early to say if the Bank will expand its quantitative easing purchase program by resuming bond and asset purchases.  Data released in the U.K. today saw December manufacturing production climb 0.9% m/m and decline 1.9% y/y while December industrial production was up 0.5% m/m and off 3.6% y/y. Cable bids are cited around the US$ 1.5340 level.  The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ?0.8820 level and was supported around the ?0.8745 level.