GBP drops across the board as Bank of England Governor King continues his perfect track record of dragging down the currency lower each time he speaks since August. Todays parliamentary testimony reiterated that the CPI increase was temporary before falling back below the 2% target in H2, and that the central risks to the recovery remained to the downside. King also reiterated the possibility for renewed quantitative easing, Cable drops from $1.5575 in Asia to $1.5396. Expect a recovery towards $1.5460s ahead of US consumer confidence figures before a possible decline back towards $1.5380s. Disappointing German IFO data drags down EUR by a full cent to $1.3590s. CADJPY is down 80 pips from yesterdays IMT, now likely to call up 86.70s in event of disappointing US consumer confidence. USDCAD eyes 1.0480.