Title: UK Housing Market Sees 1.5% Fall in Average Asking Prices in August, GBP Continues to Hold Strong in Upper 1.29s
Data released by Rightmove on Sunday revealed a 1.5% decrease in average asking prices for UK houses in August. Despite this, prices were still 0.8% higher compared to the previous year, as noted by Scotiabank’s Chief FX Strategist Shaun Osborne.
Osborne believes that the Pound Sterling (GBP) has been making steady progress and remains relatively stable in the upper 1.29s. He also mentions that upcoming UK PMI data will be released on Thursday, and BoE Governor Bailey is scheduled to speak at the Jackson Hole event on Saturday.
Although the GBP has experienced a strong rebound from its early August low, Osborne predicts that this upward trend may slow down in the near future. While short-term trend indicators are currently bullish and supporting spot gains, there are signs of a potential slowdown around 1.2954 (76.4% retracement of the July/August drop).
Osborne reassures that any dips in the GBP to the high 1.28s or low 1.29 area should continue to be well-supported for the time being.
Analysis:
The UK housing market has seen a slight decline in average asking prices for houses in August, but prices are still higher compared to last year. The Pound Sterling (GBP) remains strong in the upper 1.29s, with potential for further stability. It is important to keep an eye on upcoming UK PMI data and BoE Governor Bailey’s speech, as they could impact the GBP’s performance. Overall, the GBP’s current rebound may slow down in the short term, but any dips in the currency should be well-supported.