Release Explanation: The index, comprised by the Bank of England, measures the number of mortgage approved for the purchase and refinance of homes throughout the United Kingdom.
Trade Desk Thoughts: The number of mortgages approved by the BBA rose by 23.4K, higher than analysts’ expectations. The previously released number, for the month of November, was revised higher, to 22.4K. In January, net mortgage lending rose by £2.9 billion, still under the average of the previous six months. Overall, the release shows that the actions taken by the Bank of England, to reduce the interest rate at an unprecedented pace, still have not fully reached the real economy and consumers.
Forex Technical Reaction: The pound gained nearly 180 pips overnight. However, the pair had a huge 200-pip gap lower at the Sunday open, which still needs to be closed. On Friday, the pair tumbled to a 23-year low