Mortgage approvals at lowest level for nearly 2 years

Currencies Direct September 27th 2016 - < 1 minute read

According to yesterday’s figures, mortgage approvals were at their lowest level for nearly 2 years in August. The British Bankers Association stated that ‘consumers are likely to face diminishing purchasing power over the coming months as inflation rises and earnings growth is limited by companies’. Monday’s data showed a 21% fall since January 2015; a constant decline since the Stamp Duty laws changed in April.
Consumer confidence looks to be better away from property, as consumer credit grew 6.4% year-on-year in August, suggesting that Brexit hasn’t stopped everyone in their tracks. Investors will look at consumer confidence in the coming months, especially as unemployment could start to rise and inflation could increase by as much as 3% by the end of 2017.
Peak in foreign investment in the UK
A weaker pound in recent months has seen the number of foreign investment peak at 25.3% (year-on-year), with investors keen to buy into London whilst the price is attractive. Since Brexit, CABLE (GBPUSD) has dropped a whopping 13%, now sitting at 1.30 this morning as opposed to 1.4950 levels pre Brexit.
Over in the US, between Consumer Confidence and elections
With Hilary Clinton and Donald Trump expected to go toe-to-toe over the next few weeks, viewers appeared to vote on a dead heat for Round 1, even though Hilary seemed somewhat more prepared to tackle questions thrown at her as well as Trump trying to dance in and out of interrogations.
US Consumer Confidence is for mains today, along with the Federal Reserve’s Fischer speaking this afternoon at a conference.

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Currencies Direct

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