Richard Woolhouse, Chief Economist at the BBA, said:“We’ve seen a sharp drop in bank deposits in the last month as savvy customers take advantage of the attractive rates on offer through the Government’s pensioner bond scheme.There continues to be strong demand for personal borrowing which is at its highest levels in recent years.The housing market appears to be bottoming out with a slight increase in approvals for new purchases in the last month but this is still significantly down on the levels of activity we saw last year.”
Data did not have any major impact on the markets with Sterling still above 1.55 handle. Pair is likely to find support around 1.5450 level and resistance above 1.5550 area. Later today, in the US session, New Home Sales figures are scheduled for a release.
