GBP – European Shadow Lurks, Along With GDP

The Sterling continues to be in the shadows of EUR centric crosshairs and finds itself in the weaker realms of its range versus the USD. On Friday the U.K. released Mortgage Approval data and its results proved disappointing with an outcome of 47k compared to the expectation of 54k. Also Public Sector Net Borrowing lackluster. Today will be a light day of data but tomorrow the Revised GDP is on schedule and is expecting a slight improvement. The GBP finds itself under pressure because of the Sovereign Debt concerns from Europe and fears that the U.K. may find itself under rather dubious budget and deficit ratios too. The U.K. as a single entity enjoys greater transparency than the E.U. but investors nonetheless are proving a rather tense crowd. The Sterling could be in for a swift week of trading.

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