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U.K. Net Lending to Individuals Actual 1.3B, Expected 1.0B, Previous 0.7B (Revised from 0.9B)
U.K. Mortgage Approvals Actual 43K, Expected 41K, Previous 40K (Revised from 39K)
Release Explanation: The index, comprised by the Bank of England, measures the number of mortgages approved for the purchase and refinance of homes throughout the United Kingdom. A higher number of mortgage approvals signal an increase in growth from all areas of the economy. The U.K. is heavily dependent on its financial sector for jobs and tax revenue, and a healthy increase in mortgages is indicative of stronger banking needs.
TheLFB-Forex.com Trade Desk Thoughts: Net lending to individuals increased in April, after hitting a record low just one month earlier. The number came in at £1.3B, higher than what analysts’ expected. “The number released for the month of March was revised lower, to £0.7B. At the same time, the report showed that 43K mortgage loans were approved in April,” TheLFB-Forex.com Trade Team said.
“The March lending report indicates a troubled financial system, creating less and less credit. To some extent, it is still uncertain if the strong rate cuts made by the BoE have affected the U.K. financial system in any way,” TheLFB-Forex.com Trade Team said. “Mortgage approvals have picked up lately, but are still half of what the long-term average is,” they added.
Forex Technical Reaction: The pound declined 30 pips after the news release. During the European session, cable traded between the 1.6400 area and the neutral pivot point (1.6365)
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