UK Mortgage Approvals Bounce Back from Record Low
THE TAKEAWAY: UK mortgage approvals rise to 47.3 thousand in July, beating expectations -> June’s mortgages may have been lower because of extra holiday -> Sterling unchanged in today’s trading
The amount of mortgages approved in the UK in July bounced back from a 1.5-year low, according to the Bank of England. 47.3 thousand mortgages were approved, beating expectations by 300 and coming in higher than June’s revised record low 44.1 thousand approvals.
The rise in mortgage approvals may have been a result of June’s approvals being slowed by an extra banking holiday, and may not be indicative of a recovery. The UK has been suffering a recession over the past few quarters, partially due to the pressures from the European debt crisis.
A rise in mortgage approvals is usually a signal of a recovering economy and therefore currency positive, however there was no notable change in British Pound trading following the release. GBPUSD has not significantly moved over the past two days, trading steady above the key 1.5800 key line.
GBPUSD 15-minute: August 30, 2012
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