House Price data sees GBP rise to 10-week high against USD

Published: Monday, 29 April 2013 12:00 BST - Written by Toni Johnson

STORY LINK House Price data sees GBP rise to 10-week high against USD

The Pound has risen to its highest level in ten-weeks against the US Dollar after data showed that UK house prices increased in April, increasing investor optimism that the UK economy is showing signs that its recovery is beginning to get back on track.

Sterling climbed for a fourth day in a row against the ‘Greenback’, its longest winning streak since November 2012. The Pound has been riding relatively high after last week’s Gross Domestic Product data showed that the nation narrowly avoided slipping into a triple-dip recession. The turnaround has prompted economists to dampen their speculation that the Bank of England will boost its stimulus measures.

According to the Office for National Statistics average house prices in England and Wales rose by 0.3% in the first quarter of 2013. Economists had been predicting an expansion of just 0.1%. The Bank of England is due to meet on May the 8th to discuss their next policy decision. It is uncertain whether the Bank’s policy makers will choose to renew the quantitative easing programme after Aprils meeting revealed that they were divided over the decision.

Against the Euro the Pound weakened slightly as the Euro strengthened against the US Dollar when Enrico Letta was sworn in as Italian Prime Minister. Letta has forged an alliance with Silvio Berlusconi to end the nation’s ongoing political stalemate; with the end to the deadlock in sight riskier assets were favoured. The Euro has pressed on with making gains against the US currency as the Dollar continues to suffer from weaker than expected GDP figures and a weakening of the jobs sector.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Currency Predictions Daily Curre Forecasts