The RICS House Price Balance, one of three major British housing data reports, reported today for May confirmed a weaker sector. Concerns that the domestic economy may be slowing is hindering pound strength against the US dollar as traders expect a delay in the Bank of England’s interest rate hikes.
|
DATE |
EVENT |
ACT |
EXP |
PREV |
|
Jun 7 |
Halifax House Prices sa (MAY) (3Mo) |
-4.2% |
-4.0% |
-3.7% |
|
Jun 13 |
RICS House Price Balance (MAY) |
-28% |
-20% |
-21% |
|
Jun 14 |
DCLG UK House Prices (APR) (YoY) |
-0.2% |
0.9% |
Although the final DCLG housing report for this reporting session is due for tomorrow, the data may be overshadowed by May CPI and RPI released at 08:30 GMT. While month-to-month CPI is expected to slow to 0.2% from a previous 1.0%, year-over-year inflation is expected to stay steady at 4.5%.
Follow the CPI LIVE at 0830GMT with Technical Currency Strategist Joel Kruger here!
GBPUSD 1 Minute Chart; vertical line indicates time of release. Chart generated with FXCM Strategy Trader.
Despite an expected slowing of overall inflation in the short term and general weakness in the economy, the Bank of England is expected to hold rates steady at 0.50%. However, the Monetary Policy Committee Member Martin Weale provided some hawkish statements, saying that “softer data” has not changed his view that rates will rise, and “rate increases” would help the bank meet the CPI target.
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