The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.5390 level and was supported around the $1.5265 level. As expected, Bank of England's Monetary Policy Committee kept its main Bank rate unchanged at 0.50% yesterday and kept its asset purchase program unchanged at £200 billion. Bank for International Settlements yesterday issued a stern warning about the size of U.K. sovereign debt. Many data were released in the U.K. this week. First, March Halifax house prices were up 1.1% m/m and 5.2% y/y for the most recent three-month period. Second, February industrial production was up 1.0% m/m and off 0.1% y/y. Third, February manufacturing production was up 1.3% m/m and 1.4% y/y. Fourth, the March NIESR GDP estimate came in at +0.4%, unchanged from the revised prior reading. Cable bids are cited around the US$ 1.4455 level. The euro moved higher vis-à-vis the British pound as the single currency tested offers around the £0.8775 level and was supported around the £0.8705 level.
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