Halifax Bank of Scotland today reported housing prices in the United Kingdom (U.K.) increased 0.6% for the month of January (2012). This was the first appreciation since the month of October and a second increase for the past six months. The housing price index (H.P.I.) experienced a 1.0% decline in the month of December. Additionally, the three month average to January came lower by 0.9% compared to the previous three months as well as 1.8% lower from the same tri-month period the year before. In January, the average house price came out at ₤160,907. The figure was similar to what had been seen eight months previously (May 2011) at ₤161,039 as housing prices have changed little within the time frame. Housing economist Martin Ellis stated, "Prospects for house prices over the coming months will, to a large extent, depend on events in the Eurozone and the repercussions of developments there for the UK economy. If the UK can avoid a prolonged recession, we expect broad stability in house prices in 2012."
In other news, Greece faced greater pressures today from Germany and France to accept conditions set in the additional €130 billion bailout agreement. This included leaders of three political parties within Greece’s national unity government to sign off on the bill, thus ensuring enforcement of the new agreements. According to office of the prime minister, the three leaders will meet-up Tuesday to agree on the reforms as they will use today to edit details in the 50 page, medium-term, fiscal program. Furthermore, €1.2 billion additional planned cuts by the country need approval from other officials before Mr. Papademos’s will meet with the other leaders.
The EURGBP has been testing support near 0.8300 for the last several sessions. If an agreement is not reached on Greece this week, we might see the EURGBP heading towards fresh lows of 0.8100. If an agreement is reached, the EURGBP could continue to trade in its range between 0.8250 and 0.8400.
Eugene Ross, Analyst
Admiral Markets
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