LONDON (AFP) - Sterling picked up slightly from earlier levels but remained on the weak side, with analysts now confident that the Bank of England's Monetary Policy Committee will not raise interest rates when it meets next week.
Data from the BoE this morning showed consumer credit, mortgage lending and mortgage approvals all fell much sharper than expected.
The figures backed up recent indicators on the British housing market -- such as the Nationwide and Halifax housing surveys or mortgage approvals numbers from the likes of the British Bankers Association and the Council of Mortgage Lenders -- which have been indicating slowing activity as higher borrowing costs take their toll.
Meanwhile, the dollar slipped against major currencies on jitters ahead of next week's US presidential election, with polls suggesting a high possibility of a re-run of the the 2000 election, with an inconclusive result and consequent litigation.
"There's an element of treading water ahead of the US elections next week," said 4CAST analyst Chris Furness.
If the elections are uncontested -- although this seems unlikely given recent polls --, the market will then turn its attention to US non-farm payrolls data for October, due out on Friday next week, he added.
The US currency had rallied earlier this afternoon after much stronger-than-expected Chicago PMI numbers followed weaker-than-expected US GDP data for the third quarter, only to tip back down again as election jitters returned.
Sterling London 1545 GMT 1215 GMT
US dollar 1.8348 up from 1.8309
Euro 1.4395 up from 1.4372
Yen 194.57 up from 194.26
Swiss franc 2.1992 down from 2.1997
10/29/2004 - 16:46 GMT - AFP