UK Pound Gets Boost on Housing Price Data

Once again, the focus in the United Kingdom is on housing price data. With UK home prices on the rise, the pound is gaining ground against its major counterparts. Sterling is suffering from a weekly drop, but it is paring its overall losses, thanks to the latest data.

Even though the UK economy has made strides in recent weeks, there are still difficulties associated with the pound’s performance. The Bank of England left its monetary policy unchanged yesterday, keeping asset purchases and retaining its low interest rate. Sterling is on track for a weekly loss, but the latest data means that the losses are being pared.

According to Halifax, the mortgage unit of Lloyds Banking Group Plc, UK home prices rose 1.1 per cent for the month of November. This follows on the heels of a 0.7 per cent increase in October. Home prices are considered a very important measure for the United Kingdom, and with home prices rising, there are hopes that the economy will pick up the pace as well.

For now, the pound will just have to be content with a boost against its counterparts. If the BOE starts pulling back asset purchases, and raises rates, the pound could take off.

At 15:44 GMT GBP/USD is up to 1.6382 from the open at 1.6337. EUR/GBP is down to 0.8359 from the open at 0.8367. GBP/JPY is up to 168.0290 from the open at 166.1340.

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