The British pound rose today against the other major currencies as the house prices demonstrated growth for the first time since October 2007 in United Kingdom this March.
The market participants expected that the March report on the nationwide house prices in Great Britain will show a continued decline on the recessing economy. They were wrong as the report showed 0.9 percent month-to-month growth (and still 15.7 percent year-to-year decline) after the Februarys 1.9 percent slump. It added some positive to otherwise rather pessimistic pounds trend.
Although there can be seen other factors in the current pounds growth — like the decline in risk-aversion, the analysts point at the housing release as the primary reason. The pound is extremely dependent on the domestic real estate sector.
GBP/USD rose from 1.4452 to 1.4557 as of 9:26 GMT today. EUR/GBP declined from 0.9153 to 0.9107, while GBP/JPY increased from 142.58 to 144.60 today,
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