Currency Update

Currency Update

We return from a somewhat blustery weekend to be met with the June Rightmove House Price survey, no prizes for guessing the direction of the data. The release shows houses prices down month on month by 1.2% & states that "Getting serious about attracting buyers through more realistic pricing now appears to be more firmly on sellers agenda's, after months of denial", again nothing that we hadn't already thought of but still, when seen in black & white, a bitter pill to swallow for those living in hope of being able to realise the equity in their home or, even worse, for those who made their purchase via a 100% mortgage.

The ratio of houses to people in a position to buy is now 15:1 (2007 Average was 7:1), great news for cash buyers or those fortunate enough to have been granted a mortgage. Those looking to sell will need to ensure their property has a great USP or be willing to sharpen their pencil on the offering price. On average there are 75 unsold houses per Estate agent, not great new for sellers or for an estate agents cashflow.

GBPUSD - Sterling opened down against the dollar today off the back of the Rightmove survey data & comments in the media this weekend the BoE are not ready to raise rates anytime soon (old news to those who read our daily note)

We don't have any further UK data out today with the remainder of the week being quiet on the data front too. The main UK focus will be on Governor King & friends comments on Thursday, when they provide testimony on the May inflation report.

The US has the Lions share of the economic data releases this week, with weakness in most areas anticipated. Wednesdays FOMC decision on interest rates is expected to remain unchanged & it is anticipated that this will be the case for the remainder of the year, with there being little opportunity for them to tighten.

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