The U.K.’s Nationwide House Price Index was released this morning for the month of May. Data showed that the price of a typical British home in May is 1.2 % lower than one year ago.
On an annualized basis house prices rose higher than expected by 0.3% . This was higher than the expected 0.1% and the prior drop of 0.2%.
On a month over month basis house prices dropped by 1.2% versus a predicted drop of 1.7%. April prices dropped by 1.3%.
It is believed that the modest figures prove that the property market in the United Kingdom is reflecting a lackluster trend in the overall economy.
After release of the data, GBPUSD rallied, consolidating in the 1.64 area after having dropped from Asian session highs. Cable soon rose within 30 minutes from 1.6426 to 1.6438.