Higher home prices are helping the UK pound against the euro today. Even though the pound is down against the dollar and the yen, it is finding success against the euro.
Sterling is heading higher against the euro today, thanks in part to higher home price expectations. The Royal Institution of Chartered Surveyors reported that its UK home price gauge rose to 44 in July. This is a one-year high, and there are expectations that the gauge will rise to 48 in the next three months. With home prices likely to rise in the United Kingdom, the pound is finding support against the euro.
Also helping sterling against the euro is the fact that fears over the recent yuan devaluation are subsiding. The 19-nation currency got a boost earlier this week as traders unwound their euro carry trades. Now, though, some of the worry is subsiding and the euro is losing ground as the focus shifts back to the divergencies in currencies and policies.
UK pound is down against the US dollar and the Japanese yen, though. There is still enough risk aversion in the market to favor low beta currencies.
At 16:21 GMT EUR/GBP is down to 0.7145 from the open at 0.7149. GBP/USD is down to 1.5588 from the open at 1.5613. GBP/JPY is down to 193.8920 from the open at 193.9320.
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