GBP
The Pound strengthened against a host of its major counterparts on
Friday after UK house prices edged up 0.8% in August, marking the
sixteenth successive monthly price rise.

As a result, the annual pace of house price growth is up to 11% from 10.6% in n
July. “While this is still below the 11.8% recorded in June, house price growth
continues to outpace earnings by a wide margin, with average wage growth
running at less than 1% in recent months. 

GBP
The Pound strengthened against a host of its major counterparts on
Friday after UK house prices edged up 0.8% in August, marking the
sixteenth successive monthly price rise.

As a result, the annual pace of house price growth is up to 11% from 10.6% in n
July. “While this is still below the 11.8% recorded in June, house price growth
continues to outpace earnings by a wide margin, with average wage growth
running at less than 1% in recent months. 

EUR
The Euro lost some ground during Friday’s session after Euro-zone inflation
dropped as expected to a fresh five year low in August, but it was not likely
to force the European Central Bank into immediate policy intervention next
week. Consumer prices in the 18 countries using the euro rose by just 0.3
percent year-on-year in August, the smallest increase since October 2009. 

Inflation, which dropped unexpectedly to 0.4 percent in July, has been locked
in what ECB President Mario Draghi called a ‘danger zone’ of below 1 percent
since October last year.The figures have reiterated analyst’s belief the
Euro-zone is facing additional struggles because of economic sanctions imposed
against Russia in July over its involvement in the deepening conflict in
Ukraine.

Key Announcements:
09:30 BST – GBP – Manufacturing PMI (August) Expected to be lower at
55.00
09:30 BST – GBP – Mortgage  Approvals (July) Expected to be lower 66.6K

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