The release of the eurozone’s Q3 GDP revealed a slip to 1.6 per cent on the year, despite forecasts suggesting the rate would remain steady at 1.7 per cent. This helped the pound to stabilise against the euro although Sterling was not helped by the latest Halifax house price figures for November, which revealed that prices fell -1.4 per cent in November. Although there was still some weak growth on the year. This means UK house prices are rising at their slowest rate in six years.
But Halifax Managing Director Russell Galley noted: “While this is the lowest rate of growth in six years, it still remains within our forecast range of 0 to 3 per cent for 2018.”
Currently the average house price stands at £224,578.
Jonathan Samuels, Chief Executive of Octane Capital, said: “Without wanting to appear overly pessimistic, there’s every chance 2019 could be 2009 all over again.”
The Eurozone saw some mixed figures earlier this morning, with France’s industrial output for October increasing to a better-than-expected 1.2 per cent, up from -1.6 per cent in the previous month.
At the same time, however, Germany’s industrial production figures were also released, revealing an unexpected slump in October to -0.5 per cent, raising concerns about the Eurozone’s powerhouse economy.
Yesterday was a good day for Sterling, with the currency able to take advantage of some euro weakness as stock markets slumped for the third day in a row.
Fears reemerged that the US-China trade tensions were being reignited as a direct result of the arrest of Chinese tech giant Huawei’s CFO, Meng Wanzhou, who now faces extradition to the USA.
In the absence of much UK data today, the main catalyst for movement for the UK currency will be Brexit, as Theresa May enters the final push to get her withdrawal agreement through Parliament next week.