News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • The latest US Conference Board consumer confidence fell to the lowest level since February, the headline reading dropping to 109.3, below expectations for 114.5. Get your $USD market update from @JMcQueenFX here:https://t.co/O7xdGsydyF https://t.co/QIi7gEZw0j
  • $SPX Daily . . Know the Levels. . . #SPX https://t.co/2PnAi4pkXx https://t.co/vGo9nPuBfQ
  • ...that said, I like volatility; so by all means, bring in a person that gets these markets rocking and rolling again
  • Saying Powell is a dangerous man is disingenuous. The Fed has done very well with its dual mandate and their efforts to steady the markets for Main and Wall Street has further fed the financial bubbles we continue to blow. $VIX https://t.co/7ZM2V5ycrz
  • Fed's Powell: The Fed will not be able to shield financial markets and the economy from the fallout of a US default $USD $ES_F $SPX
  • ...also worth noting, this is the Cable's biggest dive (-1.15% at present) since Sep 10, 2020
  • While EURUSD is still holding the floor on its nearly year-long range, $GBPUSD looks like it is making a play for its head-and-shoulders 'neckline' break with this 1.3600 break https://t.co/Sp8YvWxSk4
  • With the charge in Treasury yields after the debt ceiling warning today, I'm going to move the likes of $TLT (the iShares 20+ year Treasury ETF) closer to the top of my watch list. Let's see where volume ends up today https://t.co/IbsDvIUTgr
  • https://t.co/rNvZUCFcvN https://t.co/nXu53ieBxN
  • AUD/USD appears to be stuck in a narrow range following the kneejerk reaction to the Federal Reserve interest rate decision. Get your $AUDUSD market update from @DavidJSong here:https://t.co/ghunsAUjzJ https://t.co/mTNZ7KeLWl
Brexit Briefing: British Pound Becalmed by Steady House Price Data

Brexit Briefing: British Pound Becalmed by Steady House Price Data

Oliver Morrison, Analyst

Talking Points:

  • UK annual house price growth ended 2016 at 4.5%, according to Nationwide, beating estimates of a 3.8% rise.
  • GBPUSD is now back up to 1.2255, having been as low as 1.2200 earlier this week.
  • But Nationwide warns that house price growth is likely to slow next year as the UK economy slows modestly in 2017.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for next week on the DailyFX Webinar Calendar.

The British Pound has made slight gains on the Dollar after the latest House Price Index from Nationwide, a building society, released Thursday showed that UK house price growth was relatively stable in 2016. UK annual house price growth ended 2016 at 4.5%, according to the data, beating estimates of a 3.8% rise.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “The story of UK house price growth in 2016 was one of relative stability. Annual house price growth ended 2016 at 4.5%, the same as the rate recorded in 2015.”

GBPUSD is now back up to 1.2255, having been as low as 1.2200 earlier this week after UK mortgage approvals unexpectedly fell in November, and comments from the former governor of the Bank of England, Mervyn King. He suggested that the UK government is better off seeking a ‘hard Brexit’ option when it formally launches the exit from the European Union next year, sparking fears among traders about the impact that would have on the UK’s economy and its currency. The Pound is slightly down against the Euro, but that’s mainly due to single currency’s gains. The Euro has recovered a little composure after Wednesday’s precipitous fall.

However, the report contained fears about a slowdown in prices in 2017, which may slightly unnerve Sterling bulls. Nationwide said house price growth is likely to slow next year. “Looking ahead to 2017, house price prospects will depend crucially on developments in the wider economy, around which there is a greater degree of uncertainty than usual,” said Gardner.

“Like most forecasters, including the Bank of England, we expect the UK economy to slow modestly next year, which is likely to result in less robust labour market conditions and modestly slower house price growth.” He added that a small gain - around 2% - is more likely than a decline over 2017 as a whole, since low interest rates are expected to help underpin demand while a shortage of homes on the market will continue to provide support for house prices.

There were also warnings that the above-average performance of London's housing market may be drawing to a close. “For the first year since 2008, annual house price growth in the capital was lower than the UK average, with prices increasing by 3.7% over the year, down from 12.2% in 2015,” said Gardner.

GBPUSD 15-Minute Chart

Brexit Briefing: British Pound Becalmed by Steady House Price Data

Markets

Index / Exchange Rate

Change (Exchange Hours/GMT Session Rollover)

Market Close/Last

FTSE 100

+0.00%

7,106

DAX

-0.21%

11,451

GBP/USD

+0.14%

1.2245

EUR/USD

+0.40%

1.0457

EUR/GBP

+0.21%

0.8549

Upcoming Event Risk

Events

Date, Time (GMT)

Forecast

Previous

EUR German Unemployment Change (DEC)

Tuesday, January 3, 2017

-5k

-5k

EUR German Unemployment Rate s.a. (DEC)

Tuesday, January 3, 2017

6.0%

6.0%

GBP Markit UK PMI Manufacturing SA (DEC)

Tuesday, January 3, 2017

53.2

53.4

EUR German Consumer Price Index (YoY) (DEC P)

Tuesday, January 3, 2017

1.4%

0.8%

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES