Lower UK House Prices Make Pound Weaker

The Great Britain pound slipped today after the report showed that the house prices in Britain unexpectedly decreased in April, confirming the weakness of the UK economy.
The report by Nationwide showed today that the house prices in Britain dropped 0.2 percent in April, while experts hoped for an increase by 0.3 percent. That leaves the prices 1.3 percent lower than in the same period last year. The poor macroeconomic data reduces incentive for the Bank of England to increase its interest rates, erasing appeal of the sterling.
GBP/USD rose from 1.6486 to 1.6523 by 7:30 GMT today, but retreated to 1.6512 as of 8:28 GMT. GBP/JPY traded at 133.70.

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