LONDON (AFP) - Sterling stabilised against the dollar in the wake of a series of data showing a slowing in mortgage lending in August -- further evidence that the housing market is cooling as higher interest rates take their toll.
The pound rose Monday to 1.7841 in afternoon trading against the greenback after dropping to 1.7837 in mid-morning trade.
The markets will now be looking to the latest housing market survey by the Royal Institute of Chartered Surveyors, due out Tuesday, for further indications on the state of the housing market.
However, the main weekly focus for the pound will be Wednesday's release of the Bank of England (BoE) Monetary Policy Committee's minutes from the September meeting, when rates were left on hold at 4.75 percent.
The MPC is expected to have voted unanimously to leave rates on hold, and the market will be watching to see if any discussion arose on the possibility of raising rates.
Traders expect the BoE to hike interest rates just one more time this year, probably in November.