News Column

Pound Retreats After UK Halifax House Price Index

July 9, 2014

BRUSSELS (Alliance News) - The pound came off from early highs against most major currencies in European morning deals on Wednesday, after data on UKHalifax house prices fell below forecast in June.

Data from Halifax showed that UK house prices fell 0.6% on month, below forecasts for a 0.3% slide. In May, the house prices rose 3.9%.

On year, the house price index rose to 8.8% in June, lower than the 8.9% increase expected by economists. The index registered 8.7% growth in May.

The U.K shop prices fell 1.8% in June from a year earlier, falling for the 14th straight month, the British Retail Consortium reported early in the day. Prices declined at the fastest pace in nearly eight years following the 1.4% contraction in May.

Meanwhile, the UK economy is estimated to expand at a faster pace in the second quarter, the National Institute of Economic and Social Research said late Tuesday.

Gross domestic product is estimated to expand 0.9% in the second quarter, faster than the 0.8% growth seen in the first quarter. The institute projected 2.9% growth in 2014 and 2.4% in 2015.

The pound ticked down to 1.5280 against the franc and 0.7953 against the euro, from early highs of 1.5303 and 0.7940,respectively. On the downside, the pound may possibly find support around 1.51 against the franc and 0.80 against the euro.

Retreating from an early high of 1.7146 against the greenback, the pound eased back to 1.7125. If the pound extends slide, 1.70 is seen its next possible support level.

Meanwhile, the pound was steady against the yen after the data, after climbing to 174.20 at 2:25 am ET. The pair ended yesterday's trading at 173.98.

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Source: Alliance News

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