Forex: GBP/USD: Halifax HPI up 1.1% in November; BoE: Consumers expect 3.6% inflation

on Dec 6, 2013
Updated: Oct 21, 2019
Listen Friday, December 6th:_ The GBP/USD yesterday opened at 1.6376, rose to the day’s high of 1.6402 (also Wednesday’s high), but the 1.6400 psychological level acted as strong resistance and the price retraced.

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Around midday increased volatility pushed the price to its lowest point since 28 November, at 1.6299, following the Office of Budget Responsibility’s Autumn Forecast Statement, the Bank of England’s monetary policy decision to keep the official bank rate and the Asset Purchase Facility unchanged, US Jobless Claims falling to 298,000 last week and the US annualized Q3 GDP rising by 3.6 percent.

However, the market failed to overcome the psychological 1.6300 level and the price recovered to close at 1.6329, logging a 0.47 percent loss.
Earlier today the Halifax Bank of Scotland released its House Price Index m/m for November, showing a 1.1 percent rise, bettering expectations for a 0.8 percent increase. The prior 0.7 percent growth was revised up to 1.3. On an annual basis the HPI rose by 7.7 percent, beating analysts’ forecasts for 7.2 percent rise. The prior period showed a 6.9 percent jump.

Halifax said that strong homes demand joined by low levels of property on the market was pushing prices
up and currently the average home price in the United Kingdom was £174,910.
The Halifax also said that the pace of house price increase would be “constrained” by squeezed household finances.
Martin Ellis, chief economist at the Halifax said that “we are also seeing signs of a revival in house

building, which should help bring supply and demand into better balance and curb upward pressure on prices over the medium and longer terms”.
The Bank of England released today its Consumer Inflation Expectations, showing a level of 3.6 percent. The prior report showed a level of 3.2 percent.

The report is based on a survey of about 2,000 consumers who are asked to forecast the percentage of change in the price of goods and services during the next year.
After the BoE report was released the pair jumped to an intraday high of 1.6363 and is currently trading at 1.6360.
The most anticipated economic reports from the United States today are the Non-Farm Employment Change and Unemployment Rate due at 13.30 UTC and the Preliminary UoM Consumer Sentiment, due to come out at 14.55 UTC.
**Today’s resistances: 1.6325, 1.6355 and 1.6380.**
**Today’s supports: 1.6300, 1.6235 and 1.6200.**
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