Investing.com – The pound rose to a five-day high against the U.S. dollar on Thursday, after a report showed house prices in the U.K. unexpectedly increased in March, bolstering the case for the Bank of England to tighten monetary policy.
GBP/USD hit 1.6151 during European morning trade, the pair’s highest since March 24; the pair subsequently consolidated at 1.6137, gaining 0.40%.
Cable was likely to find support at 1.5978, Wednesday’s low and resistance at 1.6266, the high of March 24.
Earlier in the day, Nationwide Building Society said house prices rose unexpectedly for a second consecutive month in March but the pick-up was unlikely to mark the start of a strong upturn.
House prices rose 0.5% in March, confounding expectations for a fall of 0.1%. February's reading was also revised upwards to show a gain of 0.7% from 0.3% previously.
"The outlook remains uncertain, but all things considered, this is unlikely to mark the beginning of a strong upturn in prices," said Robert Gardner, Nationwide's chief economist.
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.28% to hit 0.8814.
Also Thursday, the Bank of England’s quarterly credit conditions survey showed that credit conditions look set to ease slightly in the next three months, with banks keener to offer mortgages, even to borrowers with small deposits.
GBP/USD hit 1.6151 during European morning trade, the pair’s highest since March 24; the pair subsequently consolidated at 1.6137, gaining 0.40%.
Cable was likely to find support at 1.5978, Wednesday’s low and resistance at 1.6266, the high of March 24.
Earlier in the day, Nationwide Building Society said house prices rose unexpectedly for a second consecutive month in March but the pick-up was unlikely to mark the start of a strong upturn.
House prices rose 0.5% in March, confounding expectations for a fall of 0.1%. February's reading was also revised upwards to show a gain of 0.7% from 0.3% previously.
"The outlook remains uncertain, but all things considered, this is unlikely to mark the beginning of a strong upturn in prices," said Robert Gardner, Nationwide's chief economist.
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.28% to hit 0.8814.
Also Thursday, the Bank of England’s quarterly credit conditions survey showed that credit conditions look set to ease slightly in the next three months, with banks keener to offer mortgages, even to borrowers with small deposits.