The Pound is trading softer against the Euro and other peers despite the release of data on Friday which showed that the UK economic recovery is powering ahead.
The currency came under pressure midweek and is struggling to regain ground against the US Dollar, Euro and other peers. The fall came after Bank of England policy maker Martin Weale suggested that UK inflation has experienced a sharp and sudden decline since the summer.
Early in Friday’s session, data showed that house prices in England and Wales soared to new record highs in November as increasing demand pushed up prices. According to the report compiled by the real estate researcher Acadamectrics and LSL Property Services Plc house prices climbed by 0.6% on average from October. So far this year over 780,000 properties will be sold. To counter the threat of a potential housing bubble the Bank of England diluted its credit programme.
Construction output in the UK grew significantly in October according to a report released by the Office for National Statistics. Output increased by 2.2% on a monthly basis and climbed by 5.3% on a yearly one.
Howard Archer of IHS Global Insight said: “Evidence that the construction sector is gaining momentum is obviously good news for fourth-quarter GDP growth prospects, although it needs to be remembered that the sector only accounts for 6.3% of national output.
“Even so, the relatively small size of the construction sector did not prevent it being an appreciable drag on GDP growth in 2012, so it is clearly good news for the economy to see such a marked turnaround in its performance.”
Sterling is unlikely to recover ground this session due to quiet trading. Investors are growing increasingly nervous ahead of next week, with the market waiting for the highly anticipated US Federal Reserve Policy meeting where policy makers are expected to announce a tapering of the $85 billion per month monetary easing programme.
Current Pound Sterling (GBP) Exchange Rates:
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6283
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1870
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.8267
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9839
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6141
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8422
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5473
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5040
(As of 11:05 am GMT)
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