The British pound came off vis-Ã -vis the U.S. dollar today as cable tested bids around the US$ 2.0110 level and was capped around the $2.0225 level. Technically, todayâ€™s intraday high was right around the 61.8% retracement of the move from $1.9650 to $2.1160. Bank of England Governor King spoke today and said the economy should reach a more sustainable position once banking losses are revealed and financial institutions are recapitalized. BoE MPCâ€™s interest rate meeting minutes for December will be released tomorrow and could move the market if a solid majority voted to expand monetary policy. Data released in the U.K. today saw the November CPI up 2.1%, unchanged from Octoberâ€™s print and above the BoEâ€™s target rate of 2.0%. Also, Q3 business investment was up 2.0% on the quarter leading many economists and traders to upwardly revise Q3 GDP data estimates. Other news in the U.K. today saw the Treasury confirm it is extending its protection coverage for failed Northern Rock Plc. Cable bids are cited around the US$ 2.0005 level. The euro gained ground vis-Ã -vis the British pound as the single currency tested offers around the ₤0.7155 level and was supported around the ₤0.7120 level.
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