UK Pound Pulls Back on Housing Price Bubble Worries
The latest housing data in the United Kingdom sees home prices heading a little bit higher. However, there are worries that housing prices could be heading into bubble, and that is weighing on the pound a bit. Additionally, there might be some correction in the works, since the pound has performed quite well over the past six months.
UK housing prices are showing some degree of strength, but that might be the result of a bubble. Adam Posen, a former policymaker with the Bank of England, has publicly expressed his concern that a bubble is forming with regard to home prices. The UK government has been propping up the housing market with its Help to Buy program, and there are now worries that it could lead to a housing bubble.
Another thing to think about is the fact that the pound has been doing well in the last few months. The UK pound has gained against the US dollar, performing well, and there are expectations that the pound could correct lower as a result. For now, the pound is pulling back, but a bigger drop could be coming.
At 16:38 GMT GBP/USD is down to 1.6141 from the open at 1.6227. EUR/GBP is up to 0.8362 from the open at 0.8350. GBP/JPY is down to 164.1200 from the open at 163.3550.
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Earlier News About the Great Britain Pound:
- UK Pound Gets Help from Better Data and the Fed (2013-11-22)
- Minutes Show BoE Not in Hurry to Raise Rates (2013-11-21)
- UK Housing Data Negative for Sterling (2013-11-19)
- Britain's Recovery Makes Pound Stronger (2013-11-16)
- Pound Maintains Gains with Help of Optimistic Outlook (2013-11-15)