The British pound moved lower vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.5580 level and was capped around the $1.5740 level. Data released in the U.K. today saw the leading economic indicator decline to +0.4% in December from +0.9% in November. These data suggest economic activity may moderate in the next several months. Bank of England Governor King this week reported the U.K. economy is bumping along the bottom. Bank of England released its quarterly inflation report on Wednesday and noted inflation remains low in the U.K. and added the strength of the economic recovery of the U.K. economy remains highly uncertain. Notably, BoE Governor King reported economic growth has decelerated from November 2009 but said Q4 GDP numbers could be upwardly revised. Specifically on the inflation front, the central bank said inflation could move above 3% this year but added it should moderate within two years. King also noted it is too early to say if the Bank will expand its quantitative easing purchase program by resuming bond and asset purchases. Cable bids are cited around the US$ 1.5340 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 ?0.8725 level.