UK Housing Market Slowing Down – GBP Exchange Rates
The start of this year saw a lot of concern that the UK housing market was rising rapidly and many commentators were worried that we may be witnessing another housing market bubble which, if it burst would cause major economic problems and significant weakness for Sterling exchange rates. However, a report from the Royal Institute for Chartered Surveyors (RICS) has stated that the surge in demand from earlier this year is beginning to slow down meaning that demand for properties will be more in line with the supply of properties and as a result house prices are less likely to rise at the sam rate they have been so far this year. For an economy like the UK which has a lot of money tied up in bricks and mortar it is important that the housing market sees a lot of activity and that house prices rise at a steady, gradual pace. So, should we continue to see an incline in house prices but at a more reasonable pace it could be very good news for the UK economy and therefore Sterling exchange rates.
In the meantime insurers in the UK have announced that payouts for flood victims has reaced almost £450 million. There is a concern that the flood damage will have a negative impact in on housing markets in localised areas however, the fact that insurers have paid out such a large amount of money it may provide a boost to retail and construction sectors and so in the longer term may have a positive impact for the Pound.
US Exchange Rates – USD
This afternoon the key economic data release is the US Retail Sales figures which are expected to show a slight improvement and therefore may give a boost to the Dollar. Also announce in America today are their latest employment figures and also the monthly budget statement all of which could have an impact on Sterling Dollar exchange rates. So, if you need to buy or sell USD then today could be a busy day and so it is worth speaking with your account manager here at Foreign Currency Direct plc so we can discuss your currency requirements and the different options available to you. You can call us for free on 0800 328 5884 or if calling from abroad 0044 1494 725353 alternatively you can email me directly on firstname.lastname@example.org