The pound erased its early losses against its key counterparts in European deals on Monday, after data showed that U.K. mortgage approvals rose to a 3-month high in November, adding to signs of a buoyant housing market.
Data from the Bank of England showed that the number of mortgages approved for house purchases rose to 70,410 in November from 69,867 in the prior month. It was forecast to rise to 69,900. It was the highest level since August.
Total lending to individuals increased by GBP 5.3 billion in November, within which secured lending climbed GBP 3.9 billion. Economists had expected secured lending to grow GBP 3.7 billion.
Traders seem to shrug off data slowing U.K. manufacturing sector activity in December and rising consumer credit in November.
Survey data from Markit Economics showed that U.K. manufacturing PMI fell to 51.9 in December from 52.5 in the previous month.
Meanwhile, Global markets were hit after China manufacturing activity contracted at a faster pace, triggering a sell-off in Chinese stocks. Trading in Shanghai stock market was halted by afternoon, using the “circuit breaker” mechanism launched late last year.
The pound was trading in red in the previous session, amid risk aversion following China data.
The pound firmed to near a 2-week high of 1.4787 against the franc, following a decline to 1.4634 at 3:15 am ET. The pound is seen finding resistance around the 1.49 region.
Bouncing off from its early low 8-1/2-month of 174.96 against the yen, the pound rose back to 176.29. At last week’s close, the pair was worth 177.10. The pound is likely to find resistance around the 178.00 zone.
The pound, having fallen to 1.4693 against the dollar at 8:15 pm ET, strengthened to 1.4815. If the pound-dollar extends rise, 1.50 is possibly seen as its next resistance level. The pair ended last week’s deals at 1.4733.
Reversing from an early 2-1/2-month high of 0.7424 against the euro, the pound edged up to 0.7369. The pair was worth 0.7344 when it closed last week’s deals. On the upside, the pound may locate resistance around the 0.72 region.
Looking ahead, preliminary German CPI for December, Canada, U.S. manufacturing PMI reports for December and U.S. construction spending for November are slated for release in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com