Release Explanation: Measurement of the value of cash, currency and cash assets held by the public. Monetary policy controls the supply and cost of money and credit. A central bank will increase the supply of money and decrease the cost of borrowing to stimulate an economy and vice versa to slow down an economy. While measuring the cost of borrowing is fairly easy (yield on Treasury Bonds), measuring the money supply can be a more daunting task.Trade Desk Thoughts: In February, the M4 rose by £21.7 billion, or 1.4%, as analysts had predicted. Year over year, the M4 growth rate is standing at 18.8%. M4 lending excluding the effects of securitizations and loan transfers increased by £28.0 billion, seasonally adjusted in February. The twelve-month growth rate rose to 15.3% from 15.1% in January.The increase in the money supply can be seen as a consequence of the recent rate cuts and the liquidity measures the BoE has taken, but the gains are still modest when compared to the BoE’s actions.Forex Technical Reaction: The pound is currently trading near the Asian opening price, even though the pound tested the neutral pivot point (1.4160), earlier which is approximately 120 pips lower.