The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.5020 level and was supported around the $1.4890 level. Bank of England Monetary Policy Committee member Dale reported quantitative easing policies reduced gilt yields by about 100 bps. Data released in the U.K. today saw February net lending to individuals rise to £2.1 billion, evidenced that consumer credit expanded beyond forecasts. Also, the February M4 money supply grew 0.2% m/m and 3.9% y/y. Additionally, February mortgage approvals growth decelerated to 47,100. Chancellor of the Exchequer Darling last week reported his latest economic growth forecast is in line with the Bank of England forecast. Darling said he plans to reduce borrowing further and reduced his budget deficit forecast for the next five fiscal years by £44 billion. Cable bids are cited around the US$ 1.4455 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the £0.8970 level and was capped around the £0.9025 level.
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