The British pound moved lower vis-à-vis the U.S. dollar today as cable tested bids around the US$ 2.0420 level and was capped around the $2.0615 level. Technically, today’s intraday low was just above the 50% retracement of the move from $1.9650 to $2.1160. Data released in the U.K. today saw October retail sales reach a nine-month low, off 0.1% m/m and up 4.4% y/y. U.K. financial institutions continue to be challenged by funding concerns. Today’s retail sales data follows yesterday’s dovish Bank of England quarterly inflation report and the markets are now speculating
 continued 
Sterling Focus
 
Day's Change 52-Week High 52-Week Low

Instrument

Current

 Points % Date Value Date Value
Exchange Rates

15-Nov-07
EUR/GBP This marker indicates the current chart. 1.3988 -0.0031 -0.22% 15-Nov-07 1.3988 15-Nov-07 1.3988
EUR/GBP Fwd-1 Yr This marker indicates the current chart. 87.0000 0.0000 0.00% 15-Nov-07 87.0000 15-Nov-07 87.0000
GBP/AUD This marker indicates the current chart. 2.2974 0.0115 0.50% 15-Nov-07 2.2974 15-Nov-07 2.2974
GBP/CAD This marker indicates the current chart. 2.0071 0.0264 1.32% 15-Nov-07 2.0071 15-Nov-07 2.0071
GBP/CHF This marker indicates the current chart. 2.2963 -0.0109 -0.47% 15-Nov-07 2.2963 15-Nov-07 2.2963
GBP/JPY This marker indicates the current chart. 226.3700 -2.4100 -1.06% 15-Nov-07 226.3700 15-Nov-07 226.3700
GBP/USD Fwd-1 Yr This marker indicates the current chart. -261.0000 0.0000 0.00% 15-Nov-07 -261.0000 15-Nov-07 -261.0000
USD/GBP This marker indicates the current chart. 0.4888 0.0027 0.55% 15-Nov-07 0.4888 15-Nov-07 0.4888
 
Interest Rates

15-Nov-07
GBP 3M LIBOR This marker indicates the current chart. -  -  -  -  -  -  - 
USD 3M LIBOR This marker indicates the current chart. 4.8800% 0.0030% 0.06% 15-Nov-07 4.8800% 15-Nov-07 4.8800%
 
Indices

15-Nov-07
NASDAQ This marker indicates the current chart. 2,629.63 -14.69 -0.56% 15-Nov-07 2,629.63 15-Nov-07 2,629.63
 

source: DTN Market Access

part 1...the central bank will need to move interest rates lower, possibly as early as next month. The monetary outlook in the U.K. is diverging from the monetary outlook in the eurozone where the ECB clearly remains hawkish. 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 £0.7120 level.

SUPPORT   RESISTANCE

 
L1.       2.0600 2.1140 
L2.       2.0445 2.1230 
L3.       2.0240 2.1350

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