GBP:
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

GBP:
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.

USD:
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.

Today:
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.

Key Announcements:
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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