News Column

Pound At 4-day Low Versus Yen Amid UK Mortgage Approvals Data

August 26, 2014

BRUSSELS (Alliance News) - The pound fell to a multi-day low against the yen in European morning deals on Tuesday, amid the release of data showing an unexpected decline in UK mortgage approvals in July.

Data from British Bankers' Association revealed that the UK mortgage approvals declined unexpectedly in July from a 3-month high.

The number of loans approved for house purchases fell to 42,792 from 43,180 in June. It was forecast to rise to 44,065 in July.

European markets are trading mixed, as traders monitor events in Ukraine and formation of new French government.

The Ukrainian President Petro Poroshenko and Russian leader Vladimir Putin prepare to meet in Minsk, Belarus today, as the insurgency in the regions of Luhansk and Donetsk shows no signs of abating.

French Prime Minister Manuel Valls tendered his government's resignation on Monday amid a bitter row over economic policy. French President Francois Hollande has asked Valls to form a new cabinet by Tuesday, which would be "consistent with the direction" he had set for the country.

Continuing early decline, the pound hit a 4-day low of 172.11 against the yen, off early high of 172.52. On the downside, the pound may face support around the 171.00 region. At Monday's close, the pair was worth 172.48.

Reversing from an early high of 1.6594 against the US dollar, the pound fell back to 1.6568 during early European deals. The next possible downside target for the pound-greenback pair is seen around the 1.645 region.

The pound held steady against the euro, trading near yesterday's close of 0.7954, after reversing from an early low of 0.7967.

After recovering from an early 4-day low of 1.5155 against the Swiss franc, the pound held steady with pair trading at 1.5172.

Looking ahead, US durable goods orders for July, US house price index and S&P/ Case-Shiller home price index for June and consumer confidence index for August are set for release in the New York session.

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Source: Alliance News

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