The U.K. Nationwide home price index showed a sharper than expected fall in property values as the index dropped another 1.8% in February, following a 2.5% decline in the previous month. Meanwhile, on an annual basis, home prices declined 17.6% to 147,746 pounds, which is the biggest drop since the series began in 1991.
Fundamental Headlines
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GBPUSD – The U.K. Nationwide home price index showed a sharper than expected fall in property values as the index dropped another 1.8% in February, following a 2.5% decline in the previous month. Meanwhile, on an annual basis, home prices declined 17.6% to 147,746 pounds, which is the biggest drop since the series began in 1991, and the data continue to highlight the dire state of the U.K. housing market as falling house prices and lower interest rates fail to lure potential home buyers. As a result, housing conditions are likely to deteriorate further as the labor market weakens at a record pace, and the central bank is likely to adopt addition stimulus measures to avoid a deep and prolonged recession in the region. Discuss the topic and your trade ideas in the GBP/USD Forum.
EURUSD – Economic confidence in the Euro-Zone fell more than expected to reach its lowest level since recordkeeping began in 1985 as the index slipped to 65.4 from a revised reading of 67.2 in January, while the consumer confidence index dropped to -33 from -31 in the previous month. Moreover, sentiment among businesses fell to -3.51 from a revised reading of -3.03 during the same period, which was well below expectations for a reading of -3.20. Meanwhile, the Euro-Zone retail PMI dropped to 42.3 from 44.0 in January, whereas the PMI reading for Germany rose for the first time in nine month as the index jumped to 45.4 from 41.7. Furthermore, the German labor market weakened for the fourth month in February as unemployment increased 40K during the month, after rising 59K in January. The downturn in employment pushed the jobless rate to 7.9% from 7.8% in the previous month, and conditions are likely to get worse as market participants expect Europe’s largest economy faces its worst recession since World War II. As the outlook for future growth remains bleak, deteriorating fundamentals throughout the euro-region reinforces the need for a rate cut by the European Central Bank, and the central bank may adopt unconventional measures over the near-term in an effort to steer the economy out of a deepening recession. Discuss the topic and your trade ideas in the EUR/USD Forum.
