Sterling hits a 6 week low against the euro

Sterling hit a 6 week low against the euro this morning, after figures released showed a fall in UK mortgage approvals.

Despite consumer and mortgage lending picking up more than expected, figures showed fewer individuals were approved for a mortgage in January. The euro rose to 90.09 pence (€1.10), it's highest since mid-January. Against the dollar the pound fell to around $1.5140, having been at $1.5165 pre-announcement.

Mark Bolsom, Head of the UK Trading Desk, says, "Whilst January's wintry weather is partly responsible for this sharp fall in UK mortgage approvals, it is also clear that many consumers still have little or no appetite for new borrowing, despite the recession being officially over.

"As we face down a period of severe fiscal tightening with higher taxes and swingeing public spending cuts, consumers remain very concerned over the security of their jobs and economic future. Credit conditions also remain very tight as the banks keep tight controls over lending to both consumers and businesses."