U.K. Mortgage Approvals Disappoint Validating The BoE’s Concerns
• Senate Readies Goldman Assault– Wall Street Journal
• Greek Central Banker Urges More Cuts– Wall Street Journal
• Greek bonds plunge despite bail-out pledge - Financial Times
• Greece, Portugal Lead Stock Declines on Contagion Concern; Yen Strengthens Agreement - Bloomberg
• Merkel Pressed by Lawmakers to Compel Banks to Share Cost of Greek Bailout - Bloomberg
GBP/USD – U.K. mortgage approvals rose less than expected in March to 34,905 from 33,360 which validates the BoE’s concerns that credit markets will remain tight threatening the recovery,. Economists were looking for an improvement to 38,000 driven by an improving labor market and stable credit conditions. The central bank will most likely leave the door open for additional quantitative easing until they see strong evidence that banks are loosening lending standards. Meanwhile the Confederation of British Industry’s retail survey showed that expectations remain strong for future consumption with a reading of +13 same as in March. However, forecasts were for an improvement to 16 which could be a sign that domestic growth is beginning to stagnate. To discuss and other topics, please visit the GBP/USD forum.
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