The Great Britain pound recovered from the two days of losses against the U.S. dollar and continued to gain against the euro today after the U.K. house prices data was released.
The Nationwide Building Society reported a third month of gain in the real estate prices in United Kingdom. The average cost of a home went up by 1.3 percent in June, while the average forecast for the growth in June was near 0.2 percent. This news helped the pound to reach the highest level against the single European currency since July 2.
The positive report on the housing sector benefited not only the pound but also other capital markets in the country as the government bond market opened lower in Britain. The analysts point out the increased attractiveness of the pound with the current fundamental background. Three months of positive return on real estate investment can inspire more capital inflow into United Kingdom and also increase the consumer spending.
GBP/USD rose from 1.6367 to 1.6490 or 0.75 percent as of 8:21 GMT today. EUR/GBP went down 0.8572 to 0.8524, while GBP/JPY advanced from 155.55 to 156.70.
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