The British pound weakened vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.4855 level and was capped around the $1.4995 level. Cable again moved lower as traders reacted to strong-than-expected U.K. GDP data that were released on Friday. One theory suggests Prime Minister Brown may take advantage of the stronger-than-expected GDP data by calling a general election earlier than previously expected. Sterling is lower on the premise that the U.K. could have its first minority government in decades. The opposition Tory party is largely expected to assume more after more than one decade of Labour rule. Data released in the U.K. today saw February PMI construction decrease slightly to 48.5 from 48.6 in January. Cable bids are cited around the US$ 1.4455 level. The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ?0.9090 level and was supported around the ?0.9015 level.
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