Talking Points
- The British Pound was little changed against its major peers
- RICS said house price balance 5% in July versus 15% in June
- The survey cited the Brexit vote contributing to the slowdown
Keep an eye on short-term trends for British Pound crosses using the Grid Sight Index (GSI) here.
The British Pound showed a tepid response against its major peers after the Royal Institute of Chartered Surveyors (RICS) released their survey on UK’s house price growth. In July, the average cost of housing increased 5 percent versus 6 percent estimated. June’s reading was revised lower to 15 percent from 16 percent.
There were two extreme readings in this survey. The first was that dwelling price inflation slowed to the lowest measurement recorded since April 2013, a 3 year low. The second was that the month to month decline was the largest since April 2012.
According to RICS, the survey found that market uncertainties following the Brexit referendum are frequently highlighted as contributory factors to the slowdown. However, comments left by some agents suggest activity had picked up while others cited Brexit as having a modest or even negligible impact.
Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing that roughly 66 percent of open positions in GBP/USD are long. SSI is typically contrarian indicator implying further GBP/USD weakness ahead.
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