Sterling fell back by nearly a cent against the dollar as investors fled the currency after the Bank of England released figures that highlighted a surprise fall in mortgage approvals for new homes during December. Mortgage approvals fell from 60,000 to 59,000, raising fears that the recent rally in the UK housing market may not be sustainable. Cable is now at levels not seen since mid October 2009.

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Market News

  •  The RBA kept Aussie interest rates unchanged at 3.75% following three successive rate hikes.
  •  The OECD said that China needs to run at a deficit and let real exchange rates rise to rebalance their economy
  •  Data showed Swiss consumer sentiment has improved on expectations that unemployment would rise at a slower pace than was expected
  • Spanish unemployment rose by 3.1% in January to 4mn in January, up 22% in the last twelve months

Major Economic News

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MARKET DATA

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Eurozone December PPI