Currency news - Housing downturn to undermine Sterling

Housing downturn to undermine Sterling - 13-12-07

The latest UK RICS house-price survey weakened to -40.6% in November from a revised -23.4% previously and was the weakest outcome since 1998 while confidence in the housing sector continued to deteriorate.

The housing data will reinforce fears over the UK housing sector. Elsewhere, the CBI industrial orders survey weakened to +2 in November from +8 previously while the prices index also edged lower for the month

The global central bank efforts to improve liquidity will have a short-term impact on market interest rates with the Libor rates easing on Thursday. The reduction in stresses will lessen the risk that the Bank of England will be forced into an emergency rate cut to prevent a rapid deterioration in the market.

Nevertheless, underlying confidence in the UK economy is liable to deteriorate over the next few weeks with expectations of an early-2008 rate cut.

Tim Clayton
Investica Ltd
E-mail: tim.clayton@investica.co.uk
+44 (0) 1452 781001

Full list of daily currency analysis

This analysis report is intended for distribution to ACM Advanced Currency Markets SA private, corporate customers and members. Information contained in this report is based on data obtained from sources considered to be reliable, however, no guarantees be made by ACM Advanced Currency Markets SA as to the accuracy, timeliness and completeness of the data. The opinions and forecasts contained herein are subject to change without notice and ACM Advanced Currency Markets SA accepts no liability for any losses, damages and/or expenses incurred arising from or in any way connected with the utilisation of all or part of this report. This report is meant for information purposes and is not intended to be and should not be construed as an offer or solicitation to buy, sell foreign exchange or indeed any other financial instruments. This report, or any part of it may not be reproduced or distributed without the prior consent of ACM Advanced Currency Markets SA.