British Pound Holds Steady as Housing Market Signals Growth

British Pound Gives the Euros a Light Show, but the Housing Market Still Plays Hard to Catch

Pound’s Quick Comeback

The £ pulled a quick sprint in the early hours, rebounding from a dip that laid it at 1.25447 against the dollar to a brisk 1.25860 by 7:45 a.m. GMT. It’s like the pound tried to “just one more round” before the market settles.

Euro’s Gentle Step Up

Meanwhile, the euro is prancing a tad closer to the pound again. It shed its three‑month low of 0.85535 yesterday and edged up by about 0.02% today — a slight lift that shows the price relationship is getting a bit more rosy.

Housing Market Headlines

The Halifax House‑Price Index zoomed up by 0.5% on a month‑on‑month basis last November — a step above the expected 0.3%. Good news for sellers.
On an annual footing, prices fell by 1%. It’s a gentle contract, the slowest since April last year.
Shoppers are feeling the pinch from mortgage payments that keep climbing. The Bank of England keeps a close eye on these trends.
Construction activity swung lower: the S&P Global/CIPS Construction PMI slipped, signalling less demand and pushing raw‑material prices into their lowest pit in over a decade.

BoE’s Perspective

Financial Policy Committee members are mixing optimism with caution. While banking health and corporate profits shine, the housing market remains a bit wobbly—great for those who love a challenge, but not for those worried about rising mortgages.

With house prices inching higher, the Bank might hold higher rates a bit longer. Their latest chats stress that interest‑rate impacts could take time to feel the full brunt.