August’s RICS House Price Balance data exceeded expectations, strengthening to +1% compared to July’s –18%. Scotiabank’s Chief FX Strategist Shaun Osborne notes that this is the strongest data in close to two years, signaling a significant lift in the UK housing market due to expectations of lower interest rates.
GBP Holds Strong Amidst Positive Housing Market Data
Despite this positive news, GBP is currently consolidating. Cable is trading within a narrow range, indicating a potential moderation in short-term pressure on the pound. Intraday support is at 1.3000 while resistance stands at 1.3110.
Analysis:
The UK housing market has shown resilience with the RICS House Price Balance data exceeding expectations. This positive trend is attributed to expectations of lower interest rates, which have given the market a significant boost. As a result, GBP has held steady amidst this positive news, with potential for further growth in the near future. Investors and homeowners alike can take advantage of this optimistic outlook to make informed decisions regarding their finances and investments.