The Pound remained trading at its lowest levels since last December against the Euro after a housing report suggested that demand for houses in the UK is easing and as retail sales and inflation data from Spain and France beat forecasts.
According to a report by the Royal Institution of Chartered Surveyors, house price growth in the UK eased in February as demand from buyers softened. A gauge of values dropped from 53 to 45 and the number of new home buyers increased at its slowest rate in close to a year. A continuing shortage of houses in the UK did however see prices rise for an eleventh consecutive month.
“The growth in buyer numbers that we’ve seen for some months started to slow down in February, as the surge in interest sparked towards the end of last summer began to level off,” said Simon Rubinsohn, RICS chief economist.
The Euro meanwhile continued to be supported by yesterday’s comments by European Central Bank policy makers as well as the release of positive data from France and Spain.
ECB board member Benoit Cœuré said in an address to a conference in Frankfurt on Wednesday said that the ECB does not see deflation in the region, but the risk remains and the ECB is ready to act should the need to respond arises.
Retail sales in Spain rose more than economists expected in January according to the National Statistics Institute. Monthly sales increased by 2.4% and year on year sales rose by 0.5%, the first rise recorded in two months and were better than the -0.8% figure expected by economists.
Data out of France also offered the single currency support as a report showed that inflation accelerated at a faster-than-expected pace last month, easing concerns over deflation. Consumer price inflation rose 1.1% year-on-year, economists were expecting a 1% rise.
Inflation data out of Italy came in below expectations but had little impact on the Euro’s gains.
Euro Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3956 ,
Euro,, Pound Sterling,0.8366 ,
Euro,,Australian Dollar,1.5388 ,
Euro,,Canadian Dollar,1.5430 ,
Pound Sterling,,Euro,1.1953 ,
[/table]
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