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Forex - Pound slips against dollar after weak U.K. housing data

Published 06/30/2010, 03:12 AM
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Investing.com – The pound slipped against the U.S. dollar on Wednesday after worse-than-expected data on British house prices.

GBP/USD hit 1.5028 during European morning trade, a daily low; the pair subsequently consolidated at 1.5048, shedding 0.1%.

The pair was likely to find support at 1.4856, last Friday’s low, and resistance at 1.5128, last Monday’s high.

Earlier in the day, a report by Nationwide Building Society said house prices rose a seasonally adjusted 0.1% in June, following an increase of 0.5% in May.

Analysts had expected an increase of 0.3%.

Nationwide's chief economist, Martin Gahbauer attributed the slowdown to increased supply saying "Recent indicators point to an increase in the supply of property coming to the market for sale, perhaps in response to the abolition of Hips (Home Information Packs) in the opening days of the new coalition government."

The pound was also down against the euro, with EUR/GBP gaining 0.39% to hit 0.8123.

Later in the day, the U.S. payroll processing firm ADP was to release a key report on employment change in the U.S. private sector. Also Wednesday, an industry report was due to be published on the manufacturing sector in the Chicago area. The U.S. was also to release data on crude oil inventories.

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