GBP renewed minimums
The Dollar slightly decreased its value on Friday, but managed to stay in current ranges against most currencies. The upwardly revised 4th quarter GDP, as well as a favorable Chicago PMI index increased risk appetite, which in general had a negative effect on the positions of the U.S. currency. Nevertheless, the decline was limited, and the Dollar recovered in the end of the session.
The Pound Sterling continued its decline against the U.S. dollar and other currencies. Upwardly revised 4th quarter's economic growth in Britain data did not help because investors were focused on political uncertainty and the dim prospects for the future growth of the UK economy. After the negative mortgage lending data, the GBP started falling even faster. The number of approved mortgage applications in the UK in January fell to 8-month low, which is worse than forecasts. This was yet another confirmation that the restoration of the British housing market stalled. The January figure was 48,198 comparing to 58,223 in December, said the Bank of England today. As a result of European session, the British pound fell below the 12-month low at 1.4781 against the U.S. dollar and a 3-month low 0.9149 against the Euro.
