News Column

Pound Strengthens As UK House Prices Pick Up

August 29, 2014



BRUSSELS (Alliance News) - The pound firmed against the other major currencies on Friday, following a data showing that the UK house price growth accelerated unexpectedly in August.

The results of a survey by Nationwide showed that the UK house prices rose 11% year-over-year in August following the 10.6% growth in July. Economists had expected house prices growth to slow to 10.2%.

The average house price rose to GBP 189,306 in August from GBP 188,949 in July.

According to a data released by property tracking website Hometrack, the average asking price for a house in the UK was up 0.1% on month in August, unchanged from the pace in July.

On a yearly basis, house prices climbed 5.5% - slowing from 5.8% in the previous month.

The pound strengthened to 0.7934 against the euro, its strongest since August 13. The next possible resistance for the pound is seen around the 0.784 region.

German retail sales declined unexpectedly in July from June, data from Destatis showed.

The retail turnover declined by real 1.4% month-on-month in July, reversing the 1% increase in June.

The pound that end yesterday's trading at 1.5177 against the franc rose to a 2-day high of 1.5194. Further uptrend may take the pound to a resistance around the 1.525 region.

The pound edged up to 172.23 against its Japanese rival, from an early low of 171.93. If the pound continues its uptrend, it may possibly face resistance around the 173.00 level.

Core consumer prices in Japan were up 3.3% on year in July, the Ministry of Internal Affairs and Communications said - matching forecasts and unchanged from June.

Overall consumer prices were up 3.4% on year - also in line with expectations and easing from 3.6%.

After moving broadly sideways throughout Asian deals, the pound edged up to 1.6594 against the dollar. The pound is likely to seek resistance around the 1.665 level.

Looking ahead, Eurozone CPI for August and jobless rate for July are due shortly.

The US personal income and spending data for July and Reuters/University of Michigan's final consumer sentiment index for August are set for release in the New York session.



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Source: Alliance News


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