Sterling was unable to regain the 1.65 level against the dollar on Wednesday and dipped to lows around 1.6350 as the US currency secured wider support.
Global equity markets were still relatively firm during the European session with banking shares rising and this provided some degree of protection for the UK currency. It remains the case that Sterling will be much more vulnerable if there is a serious sell-off in equity markets.
The mortgage approvals data recorded a small increase for June which pushed the total to a 15-month high. The bank lending data was very weak with the increase in lending held to GBP0.4bn for June which was the lowest since the series was introduced in 1993.
The weakness in lending will maintain underlying fears over the economy and will tend to unsettle Sterling over the next few weeks. The UK currency was still resilient against the Euro with gains to 0.8575.
No comments:
Post a Comment