Good Morning,
UK house prices have posted a sharper than expected decline in the UK in July falling to the lowest average price since August 2006, according to the latest release by the Nationwide Building Society.
The Nationwide survey adds to the woes for the UK housing market. Earlier this week the Bank of England reported that the number of mortgage approvals fell to just 36,000 in June, a new record low for the series, which began in April 1993.
Earlier this morning, pollsters GfK NOP revealed that consumer confidence in the UK is running at its lowest level since it started compiling records in 1974, largely as a result of the drop in property prices.
EUR/GBP has bounced back from its key 0.7855 support level (GBP/EUR 1.2730 ) and is now around 0.7890 (1.2674). Profit taking on recent Dollar buying however has meant that GBP/USD has stayed above 1.9800 having dropped to 1.9782 but EUR/USD has moved higher from its own key support area of 1.5550.
Swiss consumer price inflation has hit a 15-year high in July as soaring oil prices highlighting the risks to the Swiss National Bank's decision to leave interest rates unchanged. The SNB left its target rate for the 3-month Swiss franc LIBOR unchanged at 2.75 percent at its meeting in June, saying the cooling of the economy should dampen inflation in the months ahead.
The Dollar has mostly held its recent gains ahead of key data due out today and tomorrow with the release of US GDP and the monthly Non-Farm Payrolls being keenly watched to see whether the momentum can be maintained.
Latest Interbank Rates 08.30 BST
Current Overnight
High Low
EUR/USD 1.5615 1.5640 1.5550
EUR/GBP 0.7889 0.7859 0.7889
GBP/USD 1.9805 1.9835 1.9782
GBP/EUR 1.2674 1.2730 1.2674
GBP/AUD 2.0925 2.0920 2.1024
USD/CHF 1.0466 1.0481 1.0441
GBP/CHF 2.0720 2.0772 2.0690
EUR/CHF 1.6344 1.6349 1.6311
GBP/HK 15.4490 15.4750 15.4340
Mike
Mike Paterson is a former senior inter-bank trader with UBS and Credit Suisse and has been involved in the FX market for over 28 years. He now runs his own consultancy advising private and corporate clients on best execution of currency requirements trading them through a small number of preferred rate providers. For further information please contact him at :
MSP Foreign Exchange Services
Office: + 44 ( 0 ) 1732 700383
Mob: + 44 ( 0 ) 7887 581696
Email: mspfx@tiscali.co.uk