GBP – Halifax HPI – Housing Report
June 30th, 2009 Posted in GBP - Pound Sterling, Market Movers
The figures for the Halifax HPI (also known as the House Price Index, Halifax Bank of Scotland) are set to be released at 8:00 am GMT this coming Wednesday. These results are set to have a very high significance on the British Pound. The data release in itself measures the alteration in the price of homes that are funded by the Halifax Bank of Scotland (HBOs).
An increase in percentage over the previous month indicates a healthy housing market for Britain. This is increasingly important now since Britain’s housing market has collapsed since the beginning of the current financial crisis.
Moderate to strong results would show a healthy British economy, as Britain’s economy is dominated by the housing and banking sectors. Thus the Pound is likely to increase dramatically following positive results from this index. Furthermore, positive results could also reveal a bottoming out of the British housing market. Therefore, investors may have more confidence in Britain’s economy following the results. If the results of the report are negative, the Pound is likely to go bearish as confidence in the Pound and British economy is highly likely to drop in this scenario.
It seems that there is a reasonable possibility that the Halifax HPI figure will be negative. However, the figures are likely to be poorer than the 2.6% result of early June, but anything is possible during this financial crisis. The 3 issues that are set to contribute 2 the results is the rising British mortgage rates, banking problems, rising unemployment, and the poor health of Britain’s economy as a whole. As a result, therefore, the Pound is expected to fall against its major currency pairs following the data release. The GBP may fall below 1.64 against the USD and above 0.8550 versus the EUR if the outcome is negative.
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Tags: Britain's housing market, GDP, halifax Bank of Scotland, HBOs, Pound
