The GBP/USD pair is falling on Tuesday being influenced by the HPI report.
The British Pound is trading to the downside against the USD for the second day in a row. The current quote for the instrument is 1.2201.
Today’s reason for selling the Pound was the HPI report. In February, the Halifax HPI in the United Kingdom added 0.1% m/m (expectations were 0/4% m/m) after losing 1.1% m/m. On YoY, the indicator expanded by 5.1% against the previous reading of 5.7%.
Usually, Halifax’s reports are quite accurate and objective, because the company deals with home loans among others. Overall, the housing sector in the country is not filled with misgivings: there is a demand, because the employment sector is stable – the Brits aren’t worried about their future and continue making expensive purchases. At the same time, it’s obvious that the housing sector is a bit decreasing due to the absence of new houses offers. This is a result of the earlier stress in the construction sector.
It appears that in 2017, for the first time in a long period, the growth of the house prices may be rather low. Most likely, this prediction will later affect the economic growth rate.
The Pound is probably affected not by the HPI report itself, but by possible consequences it may have. In addition to that, investors expect the Fed rate to be increased net week, so the demand for the USD remains quite stable.
RoboForex Analytical Department