Despite multiple indications that UK housing sector growth remains hot, the British pound has eased back over the course of the day to the 1.9900 level. PMI construction unexpectedly surged to 59.8 - the highest level in more than three years - as housing activity and employment growth both picked up.
Meanwhile, although mortgage approvals eased back to 113K from a downwardly revised 117K, the figures still remain relatively lofty and signal robust demand for home loans. Other types of borrowing grew as well, as consumer credit kept pace at 0.9 billion pounds, led by a gain in credit card lending. This has all helped contribute to M4 money supply expansion of 12.8 percent for the year, which will likely remain a major concern of the Bank of England. With little in the way of major UK releases over the next few days, GBP/USD price action could continue to be paced by the US dollar.