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Forex - GBP/USD trims gains after downbeat U.K. housing data

Published 09/13/2010, 09:07 AM
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EUR/GBP
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Investing.com – The pound trimmed gains against the U.S. dollar on Monday, retreating from the daily high, after industry data showed that demand for mortgages in the U.K. remained weak in July, traditionally a strong month.

GBP/USD retreated from 1.5489, the daily high, to hit 1.5424 during European afternoon trade, gaining 0.49%.

Cable was likely to find support at 1.5344, last Friday's low and resistance at 1.5532, the high of September 8.

Earlier in the day, the U.K. Council of Mortgage Lenders said in a report that 56,000 loans were granted to home buyers in July, up from 52,000 in June. While this reflects a seasonal rise the volumes represent a very weak market.

Commenting on the report, CML economist Paul Samter said "Lending criteria remain tight, underpinned by caution on the part of both borrowers and lenders in the light of continuing economic uncertainty."

Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.82% to hit 0.8322.

Later in the day, the U.S. was to release official data on its federal budget balance.

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