The Euro was trading close to a one-week low on Monday following the release of UK housing data which showed that the nation’s housing market is continuing to bolster the economy.
A report released by Rightmove showed that UK house prices increased yet again this month. The report showed that prices rose at their strongest annual rate since before the credit crunch and that the New Year house price rises were the highest for any January since records began.
“This is the strongest start to a new year for house prices that Rightmove has ever recorded, and that will get some potential sellers salivating at the thought of better moving prospects. With buyer demand on the up and price levels having hardened, the likelihood of finding a buyer at an acceptable price will be a potential boost to new seller numbers, especially for those trading up and needing a decent deposit to access more competitive mortgage rates,” said RightMove’s director and housing analyst Miles Shipside.
The single currency did receive some support which allowed it to recover some of its losses. There was positive news out of Italy after a seasonally adjusted industrial orders report showed that orders advanced by 2.3% on a month by month basis in November reversing the 2.3% decline witnessed in the previous month.
Domestic orders leapt by 4.1% compared to a 0.4% fall in foreign demand suggesting that Italians are growing more confident and spending more as the nation’s recession eases.
The Euro also found support from PPI data out of the region’s largest economy, Germany. The report showed that Producer price inflation increased by 0.1% in December, better than the expected -0.1% expected by economists.
Tuesday’s ZEW data could support the Euro if it comes in positively. Tomorrow also sees the release of the UK’s CBI Business optimism Index which could offer further support to the Pound.
Euro Exchange Rate:
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3553 ,
Euro,,British Pound,0.8241 ,
Euro,,Australian Dollar,1.5376 ,
Euro,,Canadian Dollar,1.4834 ,
Pound Sterling,,Euro,1.2131 ,
US Dollar,,Euro,0.7378 ,