Quick run‑down: The pound takes a dip after a UK house‑price wobble
At about 6:15 a.m. GMT, the British pound slipped 0.20 % and hit a low of 1.26160 on Friday. This slide came almost right after the news that UK house prices shrank for the first time in five months—big news for anyone who loves real‑estate headlines.
Why the housing market is shedding snowflakes
- The Halifax House Price Index fell 1 % month‑on‑month in March, the sharpest dip since September of last year.
- Year‑over‑year, growth slowed to just 0.3 % from the previous 1.6 %.
- Both figures missed analysts’ expectations (0.3 % vs 1.5 % expected).
High borrowing costs and rising real interest rates—peaking at levels last seen in 2008—are finally doing their job, frying the already‑frayed housing market.
Could this hammer the BoE’s rate‑cut plans?
Market chatter suggests that the Bank of England might consider trimming rates for the first time in June. The latest price drop fuels this possibility, though it’s not yet certain whether this trend will stick.
Now the U.S. enters the spotlight
With March non‑farm payrolls on the horizon, economists predict a decent uptick: about 212,000 new jobs, a 0.3 % rise in average hourly earnings, and a steady 3.9 % unemployment rate.
Interest‑rate hopes take a drink?
The CME FedWatch Tool still sees a >60 % chance of a rate cut next June, but this week’s numbers are nudging that probability down a bit. Positive surprises—if they come—could push the markets even harder.
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