Release Explanation: This report gauges the costs of homes in the United Kingdom. The figure is based on surveyors' opinions on the state of the market. As an economic indicator, it measures sales of newly built and existing homes. A fall in house prices indicates a weak housing market, which generally reflects a weakening overall economy.
Trade Desk Thoughts: This report has been in decline since May and this month is no better with a reading of negative 2.3. Average asking prices for homes in the U.K. have fallen 4.8 percent from a year earlier and 2.3 percent from last month alone. Unsold homes are also hitting new highs, rising from last month’s 77 to 78 in August. This may be the lowest number of transactions since 1959. Mortgage approvals also fell to the lowest level since at least June of 1999.
Forex Technical Reaction: Although this is not a top tier release, the sterling is seeing weakness after this release while currently 10 pips above the neutral pivot point.
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