UK home prices declined in December, once again calling into question the situation surrounding the economic recovery. Pound is lower today as a result of this disappointing news.
It appears that the situation in the United Kingdom is eroding a bit. The Royal Institution of Chartered Surveyors released its measure of UK home prices, and it appears that the index dropped to 56 in December from 58 in November. The news indicates that the housing market is slowing again, and the housing market is a major part of the UK economy.
The news is sending the pound lower against many of its major counterparts. It’s even lower against the US dollar, and the greenback is struggling a bit. The news was also one of the major reasons that the sterling has snapped its three-day gains against the euro. Now the pound is down against its 18-nation counterpart.
With home prices dropping again, and concerns about the economy on the rise, speculation that the Bank of England will scale back its purchase program is dwindling. Continued easing means a weak pound.
At 14:45 GMT GBP/USD is down to 1.6359 from the open at 1.6374. EUR/GBP is up to 0.8327 from the open at 0.8309. GBP/JPY is down to 170.5624 from the open at 171.2950.
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