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 28.2K, higher than analysts’ expectations. The previously released number, for the month of January, was revised higher, to 24.3K. In February, net mortgage lending rose by £3.9 billion, above 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 strengthened both in the Asian and European sessions, gaining more than 200 pips since the new trading day began. Following the release the cable added another 50 pips.