020 7898 0500Sterling continued to trade within the range that we have seen of late despite some upbeat economic data released yesterday. Official data from the Bank of England (BoE) showed that net lending to individuals rose in the month of August. The figure was much better at £4.5 billion compared to expectations of £4 billion, and an increase on the £3.8 billion gain made the previous month.
This is encouraging, as many believe that lending would slow as consumers would be reluctant to take on additional loans or mortgages. However, we saw mortgage approvals slide to their lowest level since November 2014. The conflicting data suggests that markets are still unsure how the overall outcome of Brexit will affect the UK economy.
Looking at the final trading day of the week (and the quarter) we have some key economic data due from the UK. Set for release this morning are the current account and final economic growth reading for the second quarter of this year. It is expected that the current account deficit will narrow while economic growth is expected to remain unchanged. Any deviation from this could see movements in sterling.
