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Pound euro exchange rate: GBP slips despite UK housing picking up


Data released on Thursday morning saw UK house prices pick up in May. A survey from the Royal Institute of Chartered Surveyors (RICS) revealed that its house price measure rose to a better-than-expected -10 from April’s -22 – the highest reading since last October. However, while today’s survey suggests the UK housing market was recovering, Brexit is still a concern for some. RICS Chief Economist, Simon Rubinsohn said: “Some comfort can be drawn from the results of the latest RICS survey as it suggests that the housing market in aggregate may be steading.

“However much of the anecdotal insight provided by respondents is still quite cautious, reflecting concerns about both the underlying political and economic climate.”

Meanwhile, on Wednesday four coalition sources said Italy plans to convince the European Union to delay its decision on whether to open a disciplinary procedure over its finances. 

Italy’s finances are expected to look significantly better after its tax revenue data is released in July.

Last week the European Executive Commission stated that action against Italy was warranted as its debt continued to rise despite promises it would fall.

However, despite the EU and Italy continuing to be at loggerheads on fiscal policy, the single currency edged up against Sterling. 

Looking ahead to Friday, the euro could rise against Sterling following the release of the latest German wholesale prices.

Meanwhile, Sterling could rise following a speech from the Bank of England’s Governor Mark Carney. 

If Mr Carney discusses monetary policy and his tone is overly dovish and focuses on Brexit, the pound could slide.



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