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Pound Climbs as Mortgage Approvals Reach Two-Year Record

February 24, 2012 at 3:41 by Vladimir Vyun

A fan of Great Britain 10-pound notesThe Great Britain pound rose against the US dollar and the Japanese yen after macroeconomic data showed that the number of mortgage approvals reached the highest level in two years and industrial order expectations improved. The currency was down versus the euro.

The Industrial Trends Survey of Confederation of British Industry showed that the gauge of expectations rose to -3 in February from -16 in the previous month. Not a stellar performance, but still a highest level in six months. British Bankers’ Association reported that the number of mortgage approvals for house purchases climbed to 38,092 in January from 36,553 in December, reaching the highest level since January 2010.

The sterling remained weaker against the euro. One of the reasons for that is improving outlook for Europe that reduced demand for the UK currency as a refuge. Another reason for the weakness of the pound is the suggestion from some policy makers that Britain’s economy requires more stimulus to avoid recession.

GBP/USD was up from 1.5668 to 1.5743 yesterday and traded near that level today, while GBP/JPY climbed from 125.92 to 126.15 as of 3:41 GMT today, following yesterday’s rise from 125.72 to 125.93. EUR/GBP advanced from 0.8453 to 0.8490 on the previous session and stayed at that level today.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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