British Pound: Mixed Data Leaves Sterling Slightly Lower

The British pound remained under selling pressure following the release of less than exemplary housing data in the overnight. According to the industry survey published by Rightmove, home prices rose 0.4 percent, the slowest since December of last year and less than consensus expectations.

Subsequently, the smaller than expected rise helped to pull the annualized figure lower to 13.1 percent from the previously bullish 15 percent just a month ago. Although still relatively positive for the UK economy, the figures reflect a potential soft patch in the otherwise bullish real estate sector. Similar reflections were also pinpointed in recent surveys, showing that demand was waning slightly as supply has incrementally crept higher. However, money supply figures continue to suggest inflationary pressures remain, keeping some of the more bullish sterling players in the market and propping the currency above the 1.9700 figure. The latter will keep the market focus turned to this week?s release of the Bank of England meeting minutes. But should solidarity be lost through a lone dissenter, it may continue the downward directional bias for the sterling in the near term.