Trade Desk Thoughts - U.K. RICS House Price Balance

U.K. RICS House Price Balance Actual -84.2%, Expected -85.0%, Previous -81.8%

Release Explanation: This report gauges the costs of homes in the United Kingdom. The figure is based on opinions of the state of the market and is calculated as a percentage of surveyors reporting a rise in prices minus those that are reporting a fall. Rising house prices indicate a strong housing market, which usually relates to a strong overall economy.

Trade Desk Thoughts: The house price balance declined in September according to the Royal Institution of Chartered Surveyors, who released their survey results Tuesday morning. The survey showed that the seasonally adjusted net balance of member surveyors that reported a decline rather than rising prices was -84 in September when compared to an August reading of -91.8. The Institute also stated that buyer inquiries increased to its highest level in 16 months while the average number of sales per surveyor over the previous six months fell to 11.5, this is the lowest level in the surveys ten year history.

Forex Technical Reaction: The sterling has failed to react significantly to this release. The pair is trading just above yesterdays LFB S2 pivot point at 1.7430, which was also the high of the day.

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