British Pound Gains on Rightmove House Price Survey

Talking Points:

• The Pound Sterling gained on news of higher UK hour prices
• Rightmove said the average asking price was up 1.3% on the month in March
• However annualized gains remain very sticky

The British Pound rose Monday on news that UK house prices continued to rise in March.

Property tracking website Rightmove on Monday said that asking prices were up 1.3% on the month, following a 2% rise in February.

Compared to March 2016 however, prices were up just 2.3%. That isn’t bad, but it’s the same pace as that seen in the prior month, which was the lowest print since April 2013.

Before the Brexit vote in June 2016, prices were rising by about 8% or so. Still, given the worries percolating back then about the sustainability of such gains and the lack of affordability it brought with it, a slower pace of growth won’t necessarily worry policy makers.

The Pound gained against a generally weaker US Dollar with GBP/USD getting up to 1.2393 after the survey release, from 1. 2380 just before it.

Supportive news: GBP/USD after the Rightmove Survey

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--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX