Forex - Pound gains on strong Halifax house price survey UPDATE |
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Tue, 08 Jan 2008 09:33
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(Adds comment, background, updates exchange rates)LONDON (Thomson Financial) - The pound got a boost from a surprisingly strong house price survey from Halifax.Halifax reported UK house prices rose 1.3 pct in December from the previous month, confounding expectations for a drop of 0.5 pct following three previous monthly declines.The pound was boosted by the figures, which appear to go countercurrent to a string of weak retail and other economic data and may lengthen the odds of the Bank of England cutting interest rates again as early as this week.However, Richard McGuire at RBC Capital Markets said the Halifax report will have little impact on the BoE decision Thursday.'This report does little to offset the gloom surrounding UK housing but neither does it add to the case for a policy response as soon as this week's (BoE) meeting,' McGuire said.He predicts the central bank will wait a further month to trim interest rates.'We suspect ... the majority of Monetary Policy Committee members will opt to take stock in the form of the February Inflation Report before delivering an additional easing,' McGuire said.At 8.40 am, sterling was trading at around 1.9815 to the dollar, up from 1.9775 just before the data was released.The euro was weaker against the pound, at around 0.7425 stg from around 0.7440 stg before the release.alex.brittain@thomson.comabr/kf1COPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Forex - Pound gains on strong Halifax house price survey 