After advancing on the majority of its most traded peers yesterday in response to the news that the UK economy enjoyed its strongest year of growth since 2007 in 2013, a slight downward correction saw the Pound close European trading in a modestly stronger position against the US Dollar and Euro.
However, Sterling went on to trim gains as investors focused on a speech due to be delivered by Bank of England Governor Mark Carney later today.
Carney is scheduled to speak in Scotland and discuss whether or not the nation will retain the Pound if it votes to detach itself from Britain or instead adopt the Euro.
It is expected that the BoE chief will also offer some insight as to how Scotland’s financial sector would be regulated if this year’s referendum ends with the partial dissolution of the United Kingdom.
As Carney may also use the occasion to reiterate last week’s comments regarding the BoE’s commitment to holding interest rates at record lows for as long as necessary, the Pound was feeling the pressure.
The British asset was little affected by a report detailing a 13th consecutive month of increases in UK house prices.
The Nationwide report showed that UK house prices hit their highest level for nearly six years this month, with the average property price climbing by 0.7 per cent from December to reach £176,491.
Economists had expected an increase of 0.6 per cent.
Prices were up 8.8 cent on the year.
A Nationwide economist said this of the result; ‘The housing market is continuing to gather momentum on the back of further solid gains in employment, record-low mortgage rates and rising confidence. The pickup in activity appears to be fairly broad-based.’
GBP/EUR losses held as the Euro was supported by upbeat consumer confidence figures for Germany.
While US mortgage applications data could have an impact on the GBP/USD pairing in the hours ahead, market movement may be slightly stilted ahead of the highly influential Federal Open Market Committee policy announcement, due to be delivered at 19:00 GMT.
Tomorrow the UK news to look out for includes mortgage approvals and net consumer credit figures.
Pound (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,US Dollar,1.6598 ,
Pound Sterling,,Euro,1.2134,
Pound Sterling,,Australian Dollar,1.8930,
Pound Sterling,,New Zealand Dollar,2.0058 ,
US Dollar,,Pound Sterling,0.6024,
Euro,,Pound Sterling,0.8238,
Australian Dollar,,Pound Sterling,0.5307 ,
New Zealand Dollar,,Pound Sterling,0.4992,
[/table]
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