THE TAKEAWAY: UK mortgage approvals drop to 3.5 year low -> Cable continues yesterday’s declines
The mortgages approved in June fell to a 3.5 year low according to the British Bankers Associations. The BBA reported that the amount of loans for house purchases was 26,269 in June, lower than the expected 31,200 approved mortgages, and down from the revised 29,567 home loans in May.
The UK economy has felt the pressures of the Euro debt crisis in 2012 and the BoE said in their last meeting that they will consider an interest rate cut if the most recent lending measures don’t significantly reverse the recent economic contraction.
GBPUSD has declined in today’s trading as risk aversion resulting from worries over the Spain and Greece debt situations continue. The lower than expected mortgage approvals did not notably affect cable trading. 1.5500 continues to provide support for GBPUSD.
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