Yesterday’s economic docket was fairly quiet as markets eased themselves into the four day week. Price action continued its current trend as economists’ await Friday’s all important non-farm pay rolls figure. The day was dominated by UK mortgage approvals and the US pending home sales figure. Also to note, the US and UK time zone has normalised after the daylight time shift which occurred over the weekend in the UK.
More Americans than forecast signed contracts to purchase previously owned homes in February, indicating a pickup in the housing market ahead of the spring selling season. Pending home sales posted its highest reading since June 2013 at 3.1% exceeding economists’ consensus of 0.5%. The solid gains made last month were driven by a steadily improving labour market and rising rents which has encouraged buyers to take advantage of the cheap borrowing costs.
On a positive note for the Pound, the number of UK mortgages being granted across the UK hit a six month high. The data released by the Bank of England yesterday morning was the third month in a row that approvals have risen, this time at 62k. It looks as though the housing market weakness is coming to an end and activity is now gradually turning around.
Today’s calendar will be dominated by the UK current account, Eurozone CPI and US consumer confidence reading.