The pound rallied nicely yesterday as poor economic data that came out. Traders just shrugged off the big drop in net lending to individuals for May. It reported that lending was only 600 million pounds and not 1.3 billion like initially expected. Mortgage approvals were the same as May’s figure at 43,000, slightly lower than forecast.
UK’s economic cupboard is packed for today. First up at 6 am GMT is Nationwide’s house price index. A 0.4% in house price is expected. Following at 8:30 am GMT is the current account balance. A 6.5 billion pound deficit will most likely print. Finally, there’s the UK
GDP which will be released at the same time. Preliminary results showed that UK’s economy shrank 1.9% but economists are saying that it should be much worse. The final report on GDP is predicted to show a 2% contraction.