In urgent financial news today, the UK housing market is showing signs of recovery as house prices rose for the first time in two years, attributed to falling interest rates. The Royal Institution of Chartered Surveyors (RICS) reported a net balance of 16 in September, indicating a positive shift from August's figure of 0. This change reflects growing seller confidence and stable buyer demand, following the Bank of England's recent interest rate cut to 5%.
Meanwhile, in currency markets, the British pound rose slightly against the dollar, trading at $1.3074, and gained 0.03% against the euro at €1.1953. The dollar remains strong, particularly against the yen, as investors anticipate upcoming economic data from the US.
Market analysts are closely watching the US Federal Reserve, with expectations that the chances of a rate cut next month have decreased to about 15%. The upcoming CPI inflation report is expected to show a decline in headline inflation to 2.3% from 2.5%, while core inflation remains sticky above 3%.
This combination of rising UK house prices and a strong dollar against the yen highlights significant movements in both the housing and currency markets, reflecting broader economic trends.