After sharp losses last week, the British pound recovered against all of the major currencies.
The only piece of economic data released from the UK was a report on house prices. According to Rightmove, the annualized pace of growth in house prices slowed from 5.8 to 5.0 percent. The online property search company called for UK homeowners to “get smart” about the values of their homes and to price them more realistically before house prices fall even further. This clearly indicates that the UK housing market is expected to deteriorate further which leaves the door open for a rate cut by the Bank of England next month. There is no UK economic data due for release until Thursday, which means that the value British pound will largely be driven by the movements of the other major currencies.
