Economists at ING analyze GBP outlook after the release of the RICS UK house price data survey.
Housing market pessimism starting to show
RICS UK house price data survey showed the most pessimism over UK house prices since early 2009. It will be interesting to see whether this starts to feed more heavily into UK consumer confidence and spending. We also expect it will pressure the pricing of the BoE cycle, where another 50 bps of tightening is still seen.
EUR/GBP seems happy to trace out an 0.8600-0.8650 range for the time being. But we are happy with our upside bias towards the 0.88 area for later in the year.
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