gbp/usd
October 18: Cable has extended its decline from a post-TIC data 17-day high to a
fresh base just shy of 1.8000 on the back of the RICS"s earlier-than-expected
disclosure that its September housing price balance fell to minus 30, from minus
12 in August (Reuters). A much smaller decline, to minus 15, was forecast (the
survey was due at midnight BST).
The RICS balance of minus 30 is the lowest since June 1995, and highlights the
cooling UK housing market. Many players now believe that the peak of the UK rate
tightening cycle has been reached, with no rate change expected next month (Nov
4).
A break below 1.8000 opens up additional downside risk towards 1.7965 (Friday"s
post-US retail sales data low). --Robert.Howard@thomson.com /PS
October 18: Cable has extended its decline from a post-TIC data 17-day high to a
fresh base just shy of 1.8000 on the back of the RICS"s earlier-than-expected
disclosure that its September housing price balance fell to minus 30, from minus
12 in August (Reuters). A much smaller decline, to minus 15, was forecast (the
survey was due at midnight BST).
The RICS balance of minus 30 is the lowest since June 1995, and highlights the
cooling UK housing market. Many players now believe that the peak of the UK rate
tightening cycle has been reached, with no rate change expected next month (Nov
4).
A break below 1.8000 opens up additional downside risk towards 1.7965 (Friday"s
post-US retail sales data low). --Robert.Howard@thomson.com /PS
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