The sterling reached its highest level in one month against the U.S. dollar, following the release of the report on loans for house purchase by the British Bankers Association (BBA).
The GBP/USD reached a session low at 1.6185 at 9:29 GMT, losing 0.23% on a daily basis. Support was likely to be found at November 22nd low, 1.6180, while resistance was to be encountered at October 25th high, 1.6247.
Earlier today, at 9:30 GMT, the British Bankers Association (BBA) released data regarding the number of newly approved mortgages. The median estimate of the analysts was a number of 45 200 newly approved mortgages, but the data disappointed a bit with the indicator, reaching only 42 808 for October, a slightly lower number compared to 43 182 a month ago. Although Octobers number was below expectations, it remained close to Septembers record high level of 43 182. Last months (Septembers data) is a record high number since December 2009. The data confirmed the good prospects ahead of the British economy and further supported the UK pound.
Meanwhile, U.K. government bonds lost 3.2 percent this year through Nov. 22, according to Bloomberg World Bond Indexes, while U.S. Treasuries declined 2.4 percent.
Elsewhere, the greenback received a certain support at the end of last week, after the Department of Labor said that the number of people who filed for unemployment assistance in the United States decreased by 21 000 to reach 323 000 during the week ending on November 16th 2013, or the lowest number since September.
Also, Markit Economics reported on November 21st, that the index, gauging manufacturing activity in the United States, rose to a reading of 54.3 in November, according to preliminary data, which marked an eight-month high. The final value of the manufacturing PMI came in at 51.8 in late October. Values above the key level of 50.0 are indicative for expansion in activity.
Later in the day, at 15:00 GMT, markets are awaiting the National Association of Realtor’s (NAR) to release a report on pending home sales in the United States, an indicator for the future housing market activity. The median estimate of experts pointed a 2.0% gain in October compared to a month ago, after in September sales declined 5.6%. Better than projected results will certainly provide support to greenback’s demand.
The GBP/EUR reached a session high at 1.1985 at 10:00 GMT, while EUR/USD hit a session low at 1.3534 at 8:30 GMT, losing 0.2% on a daily basis.
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