There was no economic data out for the UK yesterday, however the IMF stated that the Bank of England should stand ready to tighten its curbs on mortgages and may need to consider increasing interest rates if mortgage curbs fail to reign in the housing market.
They have also said the strong pound is hurting exporters, suggesting that the pound against the dollar is overvalued by as much as 10% contributing to the worsening current account deficit. They also state this reinforces the case against the Bank of England making hasty decisions on raising the interest rate is this typically strengthens the currency.
In the USA Markit Services PMI for July were released beating forecasts of 59.8 to come in at 60.9. Although it did beat forecasts it was slightly lower than June's figure of 61.
Also from the US yesterday pending home sales again showed a sharp drop falling a further 7.3% compared with a year ago. Suggesting many Americans remain unwilling or unable to enter the market despite historically low borrowing costs and a pickup in job creation.
Limited availability of credit and poor wage growth are making it harder for prospective buyers to purchase property .Continued gains in employment and a bigger supply of available homes will be needed to help boost new home sales.
Again there is limited data today. In the UK we have mortgage approvals which are expected to show an increase from 61.70K to 62.6K. This is expected to rise despite the tougher measures from the banks to limit the amount of mortgages.
In the USA we have the consumer confidence report out that is expected to improve slightly from 85.2 to 85.3.
GBP - 09:30 BST - Mortgage Approvals (June) expected to be higher at 62.6K
GBP - 09:30 BST - Net Lending to Individuals expected to fall to £2.6B
USD - 15:00 BST - Consumer Confidence expected higher at 85.3
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Daily Market Report - 29/07/2014