The pound got a modest boost from forecast-beating UK mortgage lending and consumer credit figures, both of which suggest that UK rate cut expectations may be premature. However, gains were limited by the prospect of a weak survey of the retail sector due out at 1000 GMT. At 0849 GMT, the pound was at 1.8156 usd from 1.8136 usd at 0807 GMT. The euro fell to 0.6634 stg from 0.6640 stg. Data released by the Bank of England showed that mortgage lending rose by 8.0 bln stg in May, the highest rise since August 2004 and well above expectations of a more modest 7.5 bln. The strong figures indicate that the UK housing market may finally be picking up after a long period of sluggish growth, and will assuage fears on the Monetary Policy Committee of a possible downturn in house prices. Players were cautious about bidding the pound higher as the Confederation of British Industry's survey of the retail sector has yet to come. If the survey does come in weak, UK rate cut expectations will strengthen, in turn weighing on the pound.