GBP/USD gains, UK lower-tier data a mixed bag

FXstreet.com (London) - Sterling has seen some resistance ahead of the US open on disappointing retail sales, but the pound has seen a strong morning against the dollar, up 0.13 percent.

While not top-tier data, house price numbers released this morning show robust demand, while retail numbers disappointed somewhat.

UK house price numbers released by property tracking website Hometrack indicated the average asking price for a house in Britain rose 0.5 percent in October, following similar gains in September. The figure represents the ninth straight month of gains.

Year-on-year, house prices gained 3.1 percent, compared with 2.4 percent in September.

Much of the increase is attributed to a widening supply-demand gap, with rigid planning restrictions butting against ultra-low interest rates.

Retail down

The CBI retail sales survey showed weakened demand, with just 2 percent of retailers seeing higher year-on-year sales. The slump comes after September’s 15-month high of 34 percent. While on the surface the numbers seem weak, much of the depressed demand has been attributed to warmer than usual weather affecting Autumn/Winter clothing sales, which are expected to pick up in the next survey.

The robust house sales numbers released earlier today were backed up by increased demand among furniture retailers.

GBP/USD is currently at USD1.6194.

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