UK Nov mortgage approvals and lending data 4 Jan

  • 67.4k prev revised down from 67.5k
  • net lending secured on dwellings £3.2bln vs 3.3bln exp vs 3.2bln prev rev down from 3.3bln
  • net consumer credit £1.9bln vs 1.6bln exp vs 1.7bln prev
  • M4 Money supply mm 0.40% vs 1.10% prev
  • M4 yy 6.40% vs 6.60% prev
  • M4 ex IOFCs 3-mth annualised 4.2% vs 7.5% exp vs 7.2% prev rev up from 6.9%

Notable for reduced M4 while increased consumer credit should set alarm bells ringing again.( see chart below). Fastest rate of growth since 2005

GBPUSD got a lift from better construction PMI but struggled to hold above 1.2280 again.

EURGBP 0.8503 with large option expiries at 0.8500 having their say so far.