The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.4890 level and was supported around the $1.4805 level. Data released in the U.K. today saw Q4 total business investment off 4.3% q/q and 23.5% y/y. Chancellor of the Exchequer Darling this week reported his latest economic growth forecast is in line with the Bank of England forecast. Darling said he plans to reduce borrowing further and reduced his budget deficit forecast for the next five fiscal years by £44 billion. On the whole, Darling's fiscal report was more proactive than expected about addressing the U.K.'s fiscal problems. The U.K.'s 2009-2010 budget deficit is expected to total around £167 billion and be slightly less in the 2010-2011 fiscal year. Cable bids are cited around the US$ 1.4455 level. The euro moved higher vis-à-vis the British pound as the single currency tested offers around the £0.9025 level and was supported around the £0.8955 level.
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