The British pound gained marginal ground vis-Ã -vis the U.S. dollar today as cable tested offers around the US$ 2.0310 level and was supported around the $2.0180 level. Cable has not been this weak since 27 September and technically, todayâ€™s intraday low was right around the 76.4% retracement of the move from $1.9870 to $2.1160. As expected, Bank of Englandâ€™s Monetary Policy Committee reduced its main repo rate by 25bps to 5.50%. MPC reported the economy has started to slow, demand is weakening, and financial market conditions are deteriorating. Todayâ€™s rate cut is the first in more than two years at the BoE and many traders believe rates will come down at least another 50bps. Data released in the U.K. today saw October manufacturing output climb 0.3% m/m and 0.3% y/y. Cable bids are cited around the US$ 2.0175 level. The euro moved higher vis-Ã -vis the British pound as the single currency tested offers around the ₤0.7225 level and was supported around the ₤0.7175 level.
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