With Eurozone concerns very much at the forefront of investors minds following the two-day meeting of EU Finance Ministers in Dublin, and risk appetite tempered by worse-than-anticipated Chinese GDP, the Pound has gained on the Euro this morning – aided by some positive domestic data.
The Pound Sterling Exchange Rate was in the region of 1.5327 against the US Dollar as of 12:30 pm GMT
According to Rightmove Plc, UK home owners are asking 2.1 per cent more for their properties than they were in March, indicating that demand is beginning to outweigh supply in the property market. This was the fourth consecutive monthly increase in the asking price of UK homes.
Currency strategist Paul Bednarczyk said this of the news: ‘We’ve had some housing data that wasn’t particularly terrible. The numbers are looking better now and it looks like [the UK] will resist the triple-dip recession. I’m cautiously optimistic on Sterling at the moment.’
After the report’s publication the Pound recorded a slight advance against the Euro, trading in the region of 0.8535 pence.
Sterling recorded a modest loss against a bullish US Dollar with the pairing achieving 1.5327, roughly 0.7 per cent off Thursday’s seven-week high.
Based on Bloomberg’s Correlation-Weighted Indexes, over the past month Sterling has strengthened by 1.1 per cent. The Euro, meanwhile, has declined by 0.4 per cent.
Volatility can be expected tomorrow morning following the release of the UK’s Consumer Price Index at 9:30 am GMT. Economists are expecting that the report show the nation’s annual inflation rate held at 2.8 per cent in March.
A negative result could dash hopes of the UK avoiding an unprecedented triple-dip recession and turn the Pound bearish. However, Sterling could advance on its peers if the result is better than predicted.
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