Cable like EUR/USD is firmer at the start of the week, presently at 1.6560, underpinned by the feeling the Dubai situation can be contained.
Couple of overnight data releases, little mixed. Hometrack price tracker rose +0.2% m/m in October, with the year on year number showing a -2.9% contraction, an improvement on the -4.2% decline seen the previous month.
Elsewhere, Gfk-NOP consumer confidence index fell 4 points in November, to -17 from previous -13.
Todays data:
09:30 GMT: UK mortgage approvals for October expected +57k, up from prevous +56.2k
09:30 GMT: Net consumer credit for October expected -0.2 bln
09:30 GMT: Net lending sec on dwelling expected 1.0 bln
09:30 GMT: M4 money supply for October (final)
BOE’s Adam Posen still sees possibility of a double-dip recession for UK and US and feels it’s too early for UK to exit QE programme. Think he’s on the money there, and wouldn’t be at all surprised to see further QE down the pike.
BUBA expected to execute some month-end EUR/GBP purchases which could weigh on cable a little. We’ve also gotten reports of good-sized EUR/GBP purchases to go through in December, possibly starting this week, related to fund repatriation flows. Worth bearing in mind. The cross sits presently at .9085.
