The Euro is on track to make a second weekly gain against the Pound as concerns rise that the UK housing market could be overheating and as the single currency remains supported from the lack of evidence that the ECB will introduce negative rates.
A report released by the real estate researcher Acadametrics and LSL Property Services Plc showed that house prices in the UK soared to a new record high in November as increased demand for property forced up prices in all parts of England and Wales. London and the southeast led the way with prices climbing by as much as 4.9% compared to the previous year. In the capital, prices surged by a whopping 9.2% in the third quarter.
The data showed that property sales exceeded 77,000 in November. Up to 780,000 properties are expected to be sold in 2013.
The rapid rise in prices has caused some investors to grow wary that the UK could be about to face a housing bubble as prices continue to go up. The prospect of overheating is very real and could have a negative impact on the UK’s strong economic recovery.
The Bank of England reduced its credit-boosting programme last month and the government is set to reduce its help to buy scheme in a bid to stave off a bubble.
demand for the euro remained supported as expectations for further monetary easing by the European Central Bank dimmed after the bank left monetary policy unchanged at its meeting this month, following a surprise rate cut in November.
Euro (EUR) Exchange Rates
As of 09:50 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3756
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8417
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5381
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6676
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4649
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 142.4070
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2226
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1877
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7269
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6502
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5995
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6826
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8179
