Realistbear Posted January 31, 2006 Share Posted January 31, 2006 http://www.dailyfx.com/story/dailyfx_finan...keyword=article The pound scaled the 1.7700 level after better than expected Nationwide housing survey demonstrated that the UK housing market remains healthy. The data from the survey showed a gain of 1.4% on a month over month basis – the best rise since July of 2005. What happens when they read the next Hometrack report? Scary is it not that the international value of our currency rises when the EAs and VIs say that "asking" prices rise. Are they that stupid? Quote Link to comment Share on other sites More sharing options...
BayAreaBear Posted January 31, 2006 Share Posted January 31, 2006 The explanation for this is simple. The markets know that the BoE has to keep a lid on the housing market until valuations are more reasonable. Any suggestion that the boom might reignite is immediately parlayed into expectations of higher future interest rates. Et voila - Sterling goes up. So watch out sterling holders for when the HPC really threatens. BAB Quote Link to comment Share on other sites More sharing options...
?...! Posted January 31, 2006 Share Posted January 31, 2006 (edited) http://www.dailyfx.com/story/dailyfx_finan...keyword=article The pound scaled the 1.7700 level after better than expected Nationwide housing survey demonstrated that the UK housing market remains healthy. The data from the survey showed a gain of 1.4% on a month over month basis – the best rise since July of 2005. Well if that's the case I can sit tight as my currency & savings climb forever with the never falling house price. Right up until the point I can emigrate and buy MC Hammer's house for a fiver. Who writes these articles? Edited January 31, 2006 by ?...! Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 31, 2006 Author Share Posted January 31, 2006 http://today.reuters.com/business/newsarti...ES-STERLING.xml SHOCK ON HORIZON? Some analysts were, however, not upbeat on the outlook for sterling, despite a relatively solid performance to date this year. "The interesting thing about sterling at the moment is that interest rate futures have steadfastly refused to price in any hopes of an interest rate hike, despite some good economic data that we saw earlier in the year," Bank of America strategist Kamal Sharma said. "That leaves sterling vulnerable to asymmetric shocks," he added, pointing to the pound's vulnerability to external imbalances -- in particular the global trade deficit. Sharma also pointed to differences within the Bank of England's Monetary Policy Committee on whether or not it should cut rates further. Some on the currency markets might be seeing through Gordon's bluster to the harsher realities of the miracle economy gone wrong? Quote Link to comment Share on other sites More sharing options...
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