Pound Jumps On Housing Data

The pound jumped as high as $1.6740 against the dollar, it's highest level since 21st October, on bullish housing data.

UK house prices rose 0.9% m/m in June, another surprising rise following on from May's 1.3% increase, sparking the inevitable recovery talk.

The year on year reading improved to -9.3% from -11.3%, so house prices are still down on a year ago, but not by quite as much.

Before we all get too carried away, it is also worth considering that the data is now based on a far smaller number of transactions than that of a year ago, so there is a possibility that the bare numbers are distorted slightly.

Against the euro the pound stands close to it's recent highest levels since December.