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U.K. BBA Mortgage Approvals Actual 27.7K, Expected 29.1K, Previous 26.7K
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.
TheLFB-Forex.com Trade Desk Thoughts: The number of mortgages approved by the BBA rose to 27.7K in April, less than what analysts had forecasted. The previously released number, for the month of March was revised to 26.7K. In April, net mortgage lending rose by only £2.7 billion, the lowest level in the last eight years, while consumer credit rose by only £0.1 billion.
“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. Consumer and mortgage credit is sitting at multi-year low levels, ” TheLFB-Forex.com Trade Team notes.
Forex Technical Reaction: Cable was unaffected by the release. Currently, the pound is trading 50 pips above Wednesday’s opening price. During the London open the pair broke the 1.6000 level, reaching the highest valuation since November 2008.
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