The British pound strengthened vis-Ã -vis the U.S. dollar today as cable tested offers around the US$ 2.0575 level and was supported around the $2.0340 level. Technically, todayâ€™s intraday high was right around the 61.8% retracement of the move from $2.0830 to $2.0180. Traders increased long sterling exposure after Bank of England announced measures in conjunction with other leading central banks to avail a significant amount of year-end liquidity to the markets. Interbank lending rates in the U.K. remain quite elevated and this announcement is intended to ease some of those pressures. Data released in the U.K. today saw the November claimant count fall 11,100 to its lowest level since 1975 with unemployment at 2.5%. Likewise, average earnings including bonuses rose 4.0% in the three months to October, down from 4.1% in September. Cable bids are cited around the US$ 2.0365 level. The euro came off vis-Ã -vis the British pound as the single currency tested bids around the ₤0.7160 level and was capped around the ₤0.7205 level.
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