The British housing sector has posted several positive gains these past few trading days. This morning’s news out of the Halifax Bank of Scotland reaffirmed the trend with a 1.2% rise in its house price index (HPI), beating forecasts that called for a meager 0.1% growth.
Construction price inflation in the UK came in as expected Monday, leading several analysts to assume that housing may be stabilizing in Great Britain. A home equity withdrawal figure also came in above forecasts the same day.
The news bodes well for Britain which has been battling a structural deficiency in its labor market that has caused rampant downturns in the nation’s economy these past several years. As the housing market picks back up, traders may see heavier investment flows to the UK which should pick the help bolster the value of the pound (GBP).
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