The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.5430 level and was supported around the $1.5290 level. Data released in the U.K. today saw March consumer price inflation climb to 0.6% m/m and 3.4% y/y while the core CPI rate was up 3.0% y/y. Another inflation measure (RPIX) was up 0.7% m/m and 4.4% y/y. Bank of England Governor King will likely need to address a letter to Chancellor Darling explaining why inflation is above the BoE's target and the central bank's outlook for inflation. Data to be released in the U.K. tomorrow include the claimant count, weekly earnings, and ILO unemployment data. BoE MPC meeting minutes will also be released tomorrow. Traders are talking about a surge in the polls by the Liberal Democratic Party and the likely impact this will have on the 6 May General Election. .Many political pundits believe the contest will result in a hung Parliament and some now say the general election is too close to call with Cameron perhaps still holding a slight lead over Brown. Cable bids are cited around the US$ 1.5140 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the £0.8740 level and was capped around the £0.8805 level.
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