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Realistbear

Highly Influential Halifax Report Boosts Pound

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http://www.dailyfx.com/story/dailyfx_finan...keyword=article

Pound Picks Up on House Prices

Wednesday, 08 March 2006

Written by DailyFX Research Team

The pound strengthened this morning as UK house prices jumped to 1.4%
from last month’s -0.4%, the largest gain in six months. Year over year data indicates housing rose to 5.5% from 5.1%, a strong sign that the property market may recover this year. If the industry manages to rebound, it may lift consumer confidence, which dropped to 94 from 98. Faced with higher taxes, utility bills, and increased unemployment, British citizens were left with less to spend, becoming more pessimistic about the state of the economy in February.

What if the Halifax report is all spin like Rightmove's "data?" What if Nationwide and the LR figures say prices are not going up up and away? At least there will be no IR cut anytime soon to keep the squeeze on retail and manufacturing making a recession more likely.

Edited by Realistbear

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Rather than being a sign that the market believes the Halifax data on house prices, I would say that the rise in the £ relflects that market thinking that this is a suitable piece of news/spin for the BOE to use as justification for a 0.25bp raise tomorrow.

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Rather than being a sign that the market believes the Halifax data on house prices, I would say that the rise in the £ relflects that market thinking that this is a suitable piece of news/spin for the BOE to use as justification for a 0.25bp raise tomorrow.

IMHO we will see a .25% hike after the next Fed meeting later this month. There is a chance that the Fed will hike .50% due to payroll inflation--enemy No. 1 in Greenspan's book and probably in Bernanke's also.

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I love how people rationalise market movements with news releases

Shares in XXXX tumbled today on profit taking as someone picked up they are full of sh1t....

lol.

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These reports (if true) are just fuelling a reason to INCREASE IR's.

TB

I agree these reports are rubbish.

Symptoms can often have many causes.

UK house prices influencing sterling?? Really?

Based on data from one single lender??

Possible that sterling would strengthen with higher IRs, that would be nice. But my money would still be on a hold.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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