The Pound is holding steady against the US Dollar and is little moved against the majority of its most traded peers as expectations rise that the Federal Reserve will choose to maintain its stimulus programme longer than expected due to the recent US government shutdown.
Sterling initially strengthened early in Monday’s session following the release of UK house price data which showed that process increased by their biggest amount since February. The continuing strength in the nation’s housing market indicates that the economy is continuing to gain in momentum.
According to Rightmove Plc, house prices advanced by 2.8% in October, rebounding from the decline recorded in September. London as per usual measured the highest increase with the average price of a house in the capital jumping by a staggering £50,000 in just one month, an increase of more than 10%. Some economists are warning of the dangers of a possible housing bubble, causing the Pound to make little head way against its peers.
The house data adds to the picture of the UK economy strengthening at a faster pace than the Bank of England initially predicted and investors raised their bets that the Central Bank will have to raise interest rates sooner than expected.
Bank of England policy maker Ben Broadbent said that Central Bank officials will only consider raising rates once the nation’s recovery is secure.
“We want to ensure that this recovery, which is only just beginning in a way, continues and is not choked off by a premature rise in interest rates,” he was quoted as saying.
Tuesday sees the release of a plethora of important reports from the United States including the jobs report delayed as a result of the US government shutdown.
Sterling is likely to move as a result of those reports but most investors are keeping an eye out for Friday’s third quarter GDP figures for the UK which is expected to show that the UK economy expanded at a faster rate in the third quarter of the year.
Current Pound Sterling (GBP) Exchange Rates:
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6173
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1830
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6719
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9105
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0. 6183
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0. 8453
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5981
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0. 5234
(As of 10:45 am GMT)
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