11 Dec 2014

Sterling Remains Range Bound

With a light economic calendar in the UK today, the disappointing RICS house price report failed to trigger any reaction among Sterling investors. This report offered further evidence of slowing house price growth in the UK, especially after the BoE tightened its mortgage lending norms earlier this year. Going forward, investors’ focus is anticipated to remain on the ECB’s TLTRO auction scheduled later today. A weak response is likely to strengthen prospects of an outright bond purchase programme in the Euro zone. Across the Atlantic, the retail sales report for November will be eyed to help investors gauge the health of spending in the US for the last quarter of 2014, particularly amid prospects that strong consumer expenditure might cause an upward revision in the nation’s final GDP print for the third quarter.