Investing.com – The pound extended losses against the U.S. dollar on Monday in choppy, subdued trade due to the Christmas holiday, falling to a fresh 2-day low, after industry data showed U.K. house prices declined for the sixth consecutive month in December.
GBP/USD hit 1.5394 during early European trade, the pair’s lowest since December 23; the pair subsequently consolidated at 1.5401, dropping 0.24%.
The pair was likely to find support at 1.5356, the low of December 22 and a 3-month low, and resistance at 1.5475, last Friday’s high.
With markets in London closed until Wednesday and many investors already away on year-end leave, trading volumes were low, resulting in volatile trade.
Earlier in the day, property research group Hometrack said in a report that house prices in the U.K. fell for the sixth consecutive month in December, declining by 0.4%, after falling by 0.8% in November.
The report showed that year-on-year, house prices in the U.K. tumbled by 1.6% in December, after falling by 1.1% in November.
Meanwhile, demand for homes, measured by the change in new buyers registering with real-estate agents, plunged by 4.8% in December from November, the biggest monthly decline since January 2009.
Commenting on the report, Richard Donnell, Hometrack’s director of research, said, “We expect house prices to remain under downward pressure in the first half of 2011 on the back of weak demand.”
Mr. Donnell added that, “Lack of mortgage finance and falling consumer sentiment are trends that will continue into 2011”.
Meanwhile, the pound was also down against the euro, with EUR/GBP jumping 0.40% to hit 0.8527.
On Saturday, the People’s Bank of China unexpectedly raised its benchmark interest rate for the second time since mid-October, in an effort to curb inflation, which surged to a 28-month high in November.
GBP/USD hit 1.5394 during early European trade, the pair’s lowest since December 23; the pair subsequently consolidated at 1.5401, dropping 0.24%.
The pair was likely to find support at 1.5356, the low of December 22 and a 3-month low, and resistance at 1.5475, last Friday’s high.
With markets in London closed until Wednesday and many investors already away on year-end leave, trading volumes were low, resulting in volatile trade.
Earlier in the day, property research group Hometrack said in a report that house prices in the U.K. fell for the sixth consecutive month in December, declining by 0.4%, after falling by 0.8% in November.
The report showed that year-on-year, house prices in the U.K. tumbled by 1.6% in December, after falling by 1.1% in November.
Meanwhile, demand for homes, measured by the change in new buyers registering with real-estate agents, plunged by 4.8% in December from November, the biggest monthly decline since January 2009.
Commenting on the report, Richard Donnell, Hometrack’s director of research, said, “We expect house prices to remain under downward pressure in the first half of 2011 on the back of weak demand.”
Mr. Donnell added that, “Lack of mortgage finance and falling consumer sentiment are trends that will continue into 2011”.
Meanwhile, the pound was also down against the euro, with EUR/GBP jumping 0.40% to hit 0.8527.
On Saturday, the People’s Bank of China unexpectedly raised its benchmark interest rate for the second time since mid-October, in an effort to curb inflation, which surged to a 28-month high in November.