The British pound weakened sharply vis-à-vis the U.S. dollar today as cable tested bids around the US$ 2.0595 level and was capped around the $2.0830 level. Bank of England Governor King said the U.K. economic outlook in the short-term is rather uncomfortable and highly uncertain and these remarks contributed to greater speculation that BoE MPC may move to ease monetary policy as early as December. MPC's Blanchflower reported the credit crisis has more room to go. Also, Nationwide reported November house prices were off 0.8% m/m while mortgage approvals pulled back to 88,000. In contrast, CBI's distributive trades survey confirmed H1 November's sales balance improve to +13 from +10 in October. Cable bids are cited around the US$ 2.0365 level. The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ₤0.7165 level and was supported around the ₤0.7125 level.