The Pound firmed against a number of peers on Monday after data showed that the number of mortgages approved in the UK climbed to its highest level in six-years as the nation’s property market continues to strengthen.
According to data released by the Bank of England lenders approved 76,947 loans to home buyers in January, the highest figure recorded since November 2007 and was higher than December’s figure of 72,798. Economists had been expecting a rise to 74,000. Despite the strong figures, approvals remain below the 90,000 seen before the start of the financial crisis in 2008.
A separate report released by Hometrack Ltd. showed that House price growth in the UK accelerated in February to its fastest pace in seven-years. London led the way in price rises but the rest of the country is beginning to follow suit.
Adding to the Pounds rise was the release of better than forecast manufacturing data. Markit’s UK manufacturing purchasing manager’s index edged higher to 56.9 in February a slight increase on January’s figure of 56.6. Economists had forecast a fall to 56.5.
“The survey suggests we should expect another quarter of robust economic growth in the opening quarter of the year,” Rob Dobson, senior economist at Markit said.
“This mini-renaissance in manufacturing is also driving the sharpest job creation since the middle of 2011, which will support the broader economic recovery through improved consumer confidence and spending.”
The Pounds gains were weighed upon slightly however by a report which showed that business lending fell at the start of the year. The BoE said that lending to non-financial businesses fell again in January, down 0.6 billion pounds after a steeper fall of 1.7 billion pounds in December. Lending to small businesses alone fell by 0.3 billion pounds.
Pound (GBP) Exchange Rates
Future Currenc forcast:
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,US Dollar,1.6740 ,
Pound Sterling,,Euro,1.2154 ,
Pound,,Australian Dollar,1.8753 ,
Pound Sterling,,Canadian Dollar,1.8527 ,
[/table]
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