GBP/USD Pressured as UK July Mortgage Approvals Miss at 56.05k

Sterling faced renewed headwinds after UK July lending data pointed to a cooling housing market, leaving GBP/USD vulnerable on the back of softer domestic credit demand. Mortgage approvals fell to 56,050 in July, well below the 59,500 consensus and down from a revised 58,210 in June, marking a clear undershoot of the prior six-month average of 60,800. Net mortgage borrowing by individuals dropped sharply to £4.3 billion from £7.7 billion in June, the steepest monthly decline in the series recently, reflecting the lagged impact of elevated mortgage rates. Consumer credit provided a partial offset, rising £2.0 billion versus £1.8 billion expected and a revised £1.86 billion prior, suggesting household spending appetite remains intact. The mixed profile complicates the Bank of England's policy calculus, keeping easing expectations alive while inflation persistence limits conviction. For GBP/USD, weak housing credit reinforces a soft fundamental backdrop, with traders watching mid-1.33s support and 1.3450 resistance. Sustained mortgage weakness would strengthen the dovish case and cap sterling rallies.