Sterling remains steady, trading within a tight range against the major currencies this morning. UK house prices grew at the strongest pace since 2007, survey data released by mortgage lender Halifax showed on Thursday. House prices grew 1.7 percent month-on-month in September, following an increase of 0.8 percent in August. This was the third consecutive rise in prices. Yesterday’s PMI survey for the construction industry added to signs that economic growth may have fallen recently. The index fell to an 8 month low of 52.6 in September down from 55.2 in August. Activity was down across the housebuilding, commercial and civil engineering sectors, while costs rose sharply.
EUR/USD has stabilised, after falling to its lowest level since July 2020 on Wednesday. The shared currency was pressured by weak German economic data as both factory orders and industrial output came in below expectations, suggesting that recovery in Europe’s economic powerhouse has lost momentum. ECB monetary policy accounts are due for release later today.
The dollar received a boost yesterday when U.S. private payrolls increased more than expected in September. Employment in the US private sector rose by 568,000 beating forecasts of 428,000. Tomorrow’s Nonfarm Payroll report now garner more market attention after the Federal Reserve signalled last month that it would likely begin reducing its monthly bond purchases as soon as November. Federal Reserve Bank chairman Jerome Powell has said recently he believes the economy is one “decent” monthly employment report short of meeting the central bank’s threshold for tapering its bond buying program.
12.30pm EUR ECB monetary policy meeting accounts
1.30pm US initial jobless claims