After the sale of UK bonds worth 1.6 billion Pounds, Sterling gained on the US Dollar. Its advance continued beyond local trade with the pairing briefly achieving 1.5410 overnight. However, the Pound has been steadily declining against the ‘Greenback’ since European markets opened this morning – despite some positive UK data.
The Pound Sterling Exchange Rate was in the region of 1.5388 against the US Dollar as of 12:15 pm GMT
Sterling slipped to $1.5346 as trade progressed on Friday despite a housing report showing that UK house prices increased for a seventh month, gaining 0.2 per cent and hitting a five-year high in March.
However, while this figure seems positive on first glance, it could be considered deceptively optimistic.
Although Home values rose 0.2 per cent from February, the data also confirmed that improvement in the UK property market has not been evenly spread. As industry expert David Brown comments: ‘Sadly, the improvements in mortgage availability, prices and sales have not been spread evenly. The market in the Southeast, particularly London, is going great guns, but less affluent areas are struggling.’
Meanwhile, a separate report issued by the Office of National Statistics detailed a monthly 5.5 per cent gain in UK construction output, but a yearly decline of 7 per cent.
In its report the ONS stated: ‘However, the February growth, while appearing strong is based on low volume of output in January. The volume of construction output in January of £6,900 million was the lowest level since publication of the monthly estimates began in January 2010 while February’s volume estimate of £7,300 million is the third lowest level behind January 2013 and December 2012.’
Meanwhile, the Pound was able to climb against the Euro for a third day. The common currency broadly softened as EU finance ministers gathered for a two-day finance meeting in Dublin, slipping against several of its most traded peers despite industrial production output in the 17-nation currency bloc rising by more than expected.
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