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19 May 2014
GBP would remain bid ahead in the year - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, sees the GBP to remain in well bid on the back of the strong UK recovery.
Key Quotes
"The release overnight of the latest Rightmove house price survey revealed that the UK housing market continues to remain buoyant. The average asking price for homes advertised for sale increased by 3.6% in April lifting the annual rate of increase to 8.9% which was the fastest rate since October 2007."
"Rightmove noted that “a late Easter in the heart of the house-hunting season has not only concertinaed the traditional hottest home-moving period by several weeks, but also stagnated seller numbers, further stirring up prices in areas of buoyant demand”. BoE Governor Carney warned again over the weekend that the UK’s housing market had “deep” problems and posed the biggest risk to the “durability” of the recovery."
"He stressed that the BoE would ensure that banks were strong enough and underwriting standards tough enough to reduce the risks that come from a housing market that has deep, deep structural problems. However, he reiterated that the BoE was powerless to address upward pressure on prices resulting from tight supply. We still expect that the pound will strengthen further in the year ahead especially against the euro continuing to benefit from robust growth in the UK compared to subdued growth in the euro-zone."
Key Quotes
"The release overnight of the latest Rightmove house price survey revealed that the UK housing market continues to remain buoyant. The average asking price for homes advertised for sale increased by 3.6% in April lifting the annual rate of increase to 8.9% which was the fastest rate since October 2007."
"Rightmove noted that “a late Easter in the heart of the house-hunting season has not only concertinaed the traditional hottest home-moving period by several weeks, but also stagnated seller numbers, further stirring up prices in areas of buoyant demand”. BoE Governor Carney warned again over the weekend that the UK’s housing market had “deep” problems and posed the biggest risk to the “durability” of the recovery."
"He stressed that the BoE would ensure that banks were strong enough and underwriting standards tough enough to reduce the risks that come from a housing market that has deep, deep structural problems. However, he reiterated that the BoE was powerless to address upward pressure on prices resulting from tight supply. We still expect that the pound will strengthen further in the year ahead especially against the euro continuing to benefit from robust growth in the UK compared to subdued growth in the euro-zone."