UK Mortgages Increase
The Bank of England (BoE) announced yesterday that mortgage approvals in 2013 had increased by 20% a staggering increase on 2012’s figures, another indication that the housing market is increasing at a rapid pace. Over 734,000 mortgages were approved which is a large reason as to why we have seen the average UK house price increase over the last year and are expecting them to continue to rise through out 2014. There is a lot of concern that the UK housing market is increasing too quickly and is creating another housing bubble which if it bursts could cause major repercussions for the financial system and could therefore cause Sterling weakness as the economy takes a hit. However, while the house prices are improving it is another good sign, for the moment, for the UK economy and so should continue to support GBP exchange rates. Over the course of the year I would expect the UK housing market to be a key focus for anyone with a Sterling currency requirement whether you are buying or selling.
Exchange Rates Today
Today the key economic data is inflation data from the Eurozone which will be key for the single currency economy. Recently there has been a lot of concern about the defaltion in the Eurozone and so if the figures today move a step closer to falling into negative terratory we may well see some major EUR weakness however the reverse is also true, if we see positive figures today then it may well help EUR exchange rates which could mean the current high levels are short lived. So, if you need to buy Euros make sure you speak with one of our experienced currency brokers today who will be more than happy to help.
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