Forex - GBP/USD edges higher after worse-than-expected U.K. HPI

Published 10/07/2010, 03:43 AM
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Investing.com – The pound edged higher against the U.S. dollar on Thursday, rising to a daily high, following the release of significantly worse-than-expected U.K. housing data.

GBP/USD hit 1.5924 during early European trade, a daily high; the pair subsequently consolidated at 1.5898, up 0.04%.

Cable was likely to find support at 1.5751, Tuesday’s low and resistance at 1.5995, the high of August 9.

Earlier in the day, data showed that the U.K.’s Halifax house price index fell unexpectedly in September. The report said that house prices fell 3.6% in September after rising 0.2% in August. Analysts had expected the index to rise 0.6% in September.

Commenting on the report, Martin Ellis, housing economist for Halifax said, “Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way and more people are putting their homes on the market. These will all be constraints on the market, dampening house prices”.

The pound was also down against the euro, with EUR/GBP gaining 0.34% to hit 0.8798.

Later in the day, the U.K. was to release official data on manufacturing production while the Bank of England was to announce its benchmark interest rate.

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