Strong economic data propelled the GBPUSD to a high of 1.5127 yesterday, allowing the pound to erase its losses from last week. The GBPJPY also edged higher, reaching a high of 140.56 and marking its seventh day in consecutive rallies.
The Nationwide HPI printed a 0.7% increase in house prices for March, outpacing the consensus of a 0.2% uptick. This was a solid rebound from the 0.8% slide seen in February. It turns out that home owners postponed listing their properties online, causing housing demand to climb.
Meanwhile, the fourth quarter GDP enjoyed an upward revision from the previously reported 0.3% to 0.4%. The pound then banked on the news that the UK’s economic expansion was slightly stronger than initially announced.
Furthermore, UK’s current account balance came in better than expected as the deficit narrowed from 5.9 billion GBP to 1.7 billion GBP in the fourth quarter. The smaller deficit was mostly a result of a higher surplus in income and trade services for the period.
The only disappointing piece of economic news from the UK yesterday was its GfK consumer confidence reading. The report showed that consumers were a bit more pessimistic in March as the index unexpectedly dipped from -14 to -15. The pound pairs retreated after the release of this report but were able to get back on their feet immediately.
Looking ahead… Well, the economic coast is clear for the UK, at least for today. It’s next set of economic reports which are due Thursday include the Halifax HPI, manufacturing PMI, and BOE credit conditions survey. Would we see another wave of upbeat figures from the UK? Stay tuned!