UK Halifax HPI Surges 2.6% In May

Release Explanation: An economic indicator that measures sales of newly built and existing homes. The House Price Index and Home Loans cover each region’s house valuations and the amount of Mortgage/Lending being made on them.

TheLFB-Forex.com Trade Desk Thoughts: In May, U.K. house prices rose for the second time in the last four months, and for a third time in the last year and a half. In May compared with April, house prices increased by 2.6%, the strongest gains since October 2002, and much more than what analysts had expected. From one year ago, U.K. house prices have fallen by 16.3%, to the same level as in 2004.

TheLFB-Forex.com Trade Team said that the current report adds further signs that the U.K. housing market may be stabilizing. A number of releases pointed out that the conditions in the U.K. housing market improved in May, something very positive for the U.K. economy and thus for the pound

Forex Technical Reaction: The pound surged 60 pips after the news release, briefly breaking above the neutral pivot point (1.6400). Since the Thursday session began, the pound has gained 100 pips, bouncing off the support trend-line of a 4 hour channel.

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