Pound Hit By Failing UK Property Market

  • 14 years ago
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The Pound continued to make gains against the Euro reaching two week highs over the weekend fuelled by the fragile situation in Europe. However Sterling has been somewhat wrong-footed this morning as the Rightmove index has registered another month on month fall in house prices, this time by -3 percent. Whether or not this will be a temporary stumble remains to be seen with a wealth of data and information throughout the week. Inflation data is due from the UK tomorrow and the US on Wednesday.

Pound Sterling – UK Markets

UK markets are opening the week to a broad stream of reports and data. Sterling, strengthened to its highest level in two weeks against the Euro but has now shown some vulnerability against both the Euro and Dollar following poor house price figures released this morning. Asking prices have fallen by 3 percent in a month according to Rightmove with larger falls predicted for 2011.

A household survey by the Bank of England has indicated that households are still struggling financially with 90 percent expecting to be heavily affected by the austerity measures. More than half of those measured are struggling to meet payments for credit cards and other unsecured debts.

There have also been some more positive releases this morning such as input prices which have shown rises for November. Good news has also arisen north of the boarder as the Bank of Scotland’s chief economist has confirmed that Scotland are avoiding a double dip recession with the manufacturing sector releasing strong figures– in line with other UK reports last week.

CPI inflation data due tomorrow will be significant – it is officially expected to continue at 3.2 percent but a rise is very possible, particularly following the surge in commodity prices.

Source: Currency Solutions

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