The British pound depreciated vis-Ã -vis the U.S. dollar today as cable tested bids around the US$ 1.9900 figure and was capped around the $2.0020 level. Technically, the pair continues to orbit the $1.9930 level, representing the 61.8% retracement of the move from $1.9170 to $2.1160. Data released in the U.K. today saw Nationwide December house prices off 0.5% m/m, the second consecutive monthly decline. Many traders believe Bank of Englandâ€™s Monetary Policy Committee will reduce the repo rate by 25bos to 5.25% as early as 10 January. Cable bids are cited around the US$ 1.9640 levels. The euro gained ground vis-Ã -vis the British pound as the single currency tested offers around the ₤0.7385 level and was supported around the ₤0.7310 level.
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