On Wednesday afternoon, the GBP/USD pair is growing, as the market’s attention to the USD died out.
The British Pound is strengthening in the middle of the week and taking advantage of the falling demand for the USD. The current quote for the instrument is 1.2291.
According to the statistics published today, the Nationwide HPI in the UK slowed down in October and was the lowest over the last 9 months. Last month, the indicator added 4.6% y/y after 5.3% y/y the month before, although it was predicted to be 4.9% y/y. The last time such low number was in January 2016. On a month-on-month basis, the number in October didn’t change at all, after adding 0.3% m/m in September.
Right now, the British housing market is keeping a good balance between demand and supply, and the stable labor market, which make the population financially reliable, is adding some predictability to the sector. Mortgage rates in the country are the lowest ever, thus providing the housing market with the stable interest on the part of buyers.
However, political and economic uncertainty due to the upcoming Brexit doesn’t support any particular activity on the real estate market. In some way, it’s even good: a theoretic chance to make a “bubble” here is minimized.
RoboForex Analytical Department
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