Investing.com | Jan 30, 2018 10:27
Investing.com - The pound pushed higher on Tuesday against most major currencies following the release of Bank of England data showing that consumer lending grew more than expected in December.
At 10:30 GMT, GBP/USD was 1.4100, up 0.18% from the previous session close of 1.4075.
Immediately prior to the Bank of England data release at 09:30 GMT, cable was down to 1.4028. Earlier on Tuesday the pound sank to its week low below 1.40.
Bank of England data showed consumer lending grew 9.5% in December, from November’s growth of 9.3%.
The BoE consumer credit was 1.520 billion in December, better than the 1.300 billion forecast. November consumer credit was 1.497 billion, revised upward from 1.400 billion.
Net lending to individuals increased by £5.2 billion in December, matching November’s upwardly revised figure. Analysts had predicted an increase of £4.8 billion. November’s figure was revised upward to £5.2 billion, from £4.9 billion.
Mortgage approvals were down in December, missing the forecast figure. Mortgage approvals fell to 61.04K from 64.71K in November, downwardly revised from 65.14K. The consensus figure was 66.00K.
The amount of mortgage approvals in December was the lowest since January 2015. The Bank of England increased interest rates to 0.5% in November 2017.
Mortgage lending increased by 3.68 billion in December, compared to 3.74 billion the month before. The forecast figure had been 3.45 billion.
M4 Money Supply decreased by 0.6% in December, lower than the forecast increase of 0.2%. The figure for November was revised upward from 0.1% to 0.2%.
The pound rallied last week, reaching post-Brexit referendum highs of above 1.43. Sterling came under pressure on Monday following a report from the House of Lords that stated the legislation to exit the EU had ‘fundamental flaws’.
The legislation has been voted through the House of Commons, however the House of Lords will begin debating the legislation this week.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.26% to 88.94.
EUR/GBP was up 0.11% at 0.8808. Prior to the data release from the BoE, the single currency was 0.8828 against the pound.
Eurozone GDP marked the bloc's strongest growth for a decade. Annual growth for 2017 was 2.7%, while growth in the fourth quarter of 2017 came in as expected at 0.6%. Growth in the third quarter was revised upward to 0.7% from 0.6%. EUR/USD rose 0.31% to 1.2421.
GBP/CAD was flat at 1.7369.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.