The British pound weakened sharply vis-à-vis the U.S. dollar today as cable tested bids around the US$ 2.0185 level and was capped around the $2.0445 level. Technically, today's intraday lows were right around the 76.4% retracement of the move from $1.9870 to $2.1160. Bank of England MPC member Baker dovishly said the U.K. economy is not moving back to a high inflation environment and added growth has been strong. Most traders believe BoE's MPC will continue lowering interest rates in 2008. Cable bids are cited around the US$ 2.0175 level. The euro came off vis-à-vis the British pound as the single currency tested bids around the ₤0.7140 level and was capped around the ₤0.7175 level.