Investing.com – Sterling erased early gains against the U.S. dollar on Monday after British mortgage lender Halifax said U.K. house prices fell at their fastest pace in more than a year in December.
GBP/USD retreated from 1.557, the daily high, to hit 1.5498 during European morning trade, shedding 0.31%.
Cable was likely to find support at 1.5404, last Friday’s low and resistance at 1.5578, the high of the same day.
The Halifax house price index fell 1.3% in December, after a 0.2% fall in November. That took house prices in the three months to December down 1.6% compared with a year ago, the biggest fall since November 2009. Analysts had expected house prices to fall 0.3% in December.
Martin Ellis, housing economist at Halifax, predicted little change in UK house prices in 2011.
"Interest rates are likely to remain very low for some time. This will continue to support a favorable affordability position for those entering the market and limit financial pressure on existing homeowners to sell," Ellis said.
Sterling was also down against the euro, with EUR/GBP gaining 0.33% to hit 0.883.
Later in the day, the U.K. was to publish industry data on retail sales.
GBP/USD retreated from 1.557, the daily high, to hit 1.5498 during European morning trade, shedding 0.31%.
Cable was likely to find support at 1.5404, last Friday’s low and resistance at 1.5578, the high of the same day.
The Halifax house price index fell 1.3% in December, after a 0.2% fall in November. That took house prices in the three months to December down 1.6% compared with a year ago, the biggest fall since November 2009. Analysts had expected house prices to fall 0.3% in December.
Martin Ellis, housing economist at Halifax, predicted little change in UK house prices in 2011.
"Interest rates are likely to remain very low for some time. This will continue to support a favorable affordability position for those entering the market and limit financial pressure on existing homeowners to sell," Ellis said.
Sterling was also down against the euro, with EUR/GBP gaining 0.33% to hit 0.883.
Later in the day, the U.K. was to publish industry data on retail sales.