Thursday, October 7, 2010

GBP: Morning news from Halifax about falling of housing prices on 3.6 %, are very disturbing


Against long weakness of dollar sterling remains the main disappointment. Despite new sharp dollar downing in last 24 hours, pound remains nearby 1.59, and till now it didn't manage to break through a maximum of the beginning of August at 1.60. Lagging of pound against other principal currencies except for dollar wasn't surprising, considering the rigid economy of budgetary funds sounded by the Chancellor, and also fears that the economy can back be rolled away in recession to that falling of housing prices has served as the proof. Morning news from Halifax that housing prices have fallen to 3.6 % for the last month, are very disturbing, if actually are true. That is interesting, any observer didn't expect today any actions from Bank of England, both change of interest rates, and change of the size of the buy program of assets. This unanimity also is surprising. Arguments for benefit of any action of Bank of England today more powerful, than as it seems to us, think observers.

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