Currency Focus
EUR - The data in Europe has been on the strong side, as a result, it looks like ECB will have to continue on their tightening path.
GBP - Mortgage lending figures are a little stronger than expected, with approvals numbers particularly strong. The figures sugggest that the underlying picture of the housing market remains fairly healthy. The pick up in mortgage approvals to a near three-year high of 128,000 in October suggests that August's interest rate hike failed to have any immediate significant dampening impact on housing market activity, although it could be that some people were seeking to tie up mortgage deals before interest rates moved higher still in November. The striking feature is the strength of the mortgage market in October, with both approvals and net mortgage lending exceeding expectations. The Bank of England will be keeping a watchful eye on this data.
JPY - Data over the last two days weak retail sales followed by strong industrial production are not encouraging for the prospect of a self-sustaining economic recovery. The headline figure was much stronger than the consensus forecast of a drop. The data could scale back speculation that the Bank of Japan will be unable to raise interest rates before the fiscal year-end in March. But this production data alone cannot allow the BOJ to lift interest rates before year-end, as such a policy move would need a pick-up in consumption.
GBP - Mortgage lending figures are a little stronger than expected, with approvals numbers particularly strong. The figures sugggest that the underlying picture of the housing market remains fairly healthy. The pick up in mortgage approvals to a near three-year high of 128,000 in October suggests that August's interest rate hike failed to have any immediate significant dampening impact on housing market activity, although it could be that some people were seeking to tie up mortgage deals before interest rates moved higher still in November. The striking feature is the strength of the mortgage market in October, with both approvals and net mortgage lending exceeding expectations. The Bank of England will be keeping a watchful eye on this data.
JPY - Data over the last two days weak retail sales followed by strong industrial production are not encouraging for the prospect of a self-sustaining economic recovery. The headline figure was much stronger than the consensus forecast of a drop. The data could scale back speculation that the Bank of Japan will be unable to raise interest rates before the fiscal year-end in March. But this production data alone cannot allow the BOJ to lift interest rates before year-end, as such a policy move would need a pick-up in consumption.
posted by Naveen Pantera at 9:16 PM
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