British Pound Shrugs Off Soft June Lending Data as GBP/USD Hits $1.5400
THE TAKEAWAY: GBP Net Consumer Credit (JUN) > £0.5B versus £0.7B expected, from £0.8B (revised higher from £0.7B) > GBP Mortgage Approvals (JUN) > 57.7K versus 59.7K expected, from 58.1K (revised lower from 58.2K) > GBPUSD BULLISH
Despite misses on both sets of data due out this morning, the British Pound has scaled the wall of worry and climbed to fresh new highs against the US Dollar. Both the consumer credit and the housing lending reports showed that the uptick in UK yields over the month of June presented a significant obstacle to the economy.
As noted in the FX Headlines report, the risk to these data was to the downside given the negative correlation between higher interest rates and lending. However, such data failed to provide reason for traders to jettison their Sterling longs.
GBPUSD 1-minute Chart: July 29, 2013
Charts Created using Marketscope – prepared by Christopher Vecchio
Following the release, the GBPUSD dipped from $1.5390 to 1.5385, before rebounding to fresh session highs at 1.5413. At the time this report was written, the pair had eased to 1.5401.
--- Written by Christopher Vecchio, Currency Analyst
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