The British pound depreciated vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.4930 level and was capped around the $1.5025 level. Bank of England Monetary Policy Committee member Sentance last week reported he's been relatively encouraged by the turnaround we've seen in the last year, both in the UK and in the global economy. You have to recognize there is some risk of a double dip, but that's not the central forecast. You'd have to see some factors bring that about: we've seen big shocks in the international economy over the last couple of years, so you couldn't rule out some new shocks emerging on the financial front which could set back the economy. But that's not my central expectation. It was reported last week that Bank of England reported net business lending fell 9.3% m/m, the sharpest decline since record-keeping began in 1999. Cable bids are cited around the US$ 1.4455 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the US$ 0.9000 figure and was capped around the £0.9045 level.
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