Pound Holds Four-Day Gain Versus Euro as House-Price Gauge Falls
The pound held a four-day gain versus the euro after a Royal Institution of Chartered Surveyors gauge of house prices in the U.K. declined last month, remaining around a level indicating “broadly flat” values.
Sterling was little changed against the dollar. The RICS said the index dropped to minus 9 from minus 7 in October, citing a monthly poll of property surveyors. A result below zero means more of them saw values drop than increase last month. The median forecast of analysts surveyed by Bloomberg was for an improvement to minus 5. Gilts were little changed before the U.K. plans to sell as much as 3.25 billion pounds ($5.23 billion) of government bonds maturing in 2022.
The pound was at 80.49 pence per euro at 8:24 a.m. London time from 80.50 yesterday and fetched $1.6084 after rising to $1.6131 on Dec. 4, the strongest since Nov. 2.
Sterling has gained 1.4 percent this year, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-market currencies. The euro declined 2.5 percent and the dollar fell 2.3 percent.
The yield on 10-year gilts was 1.77 percent, with the price of the 1.75 percent security at 99.83. Two year yields were also little changed,at 0.27 percent.
Gilts returned 2.8 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bunds gained 4.2 percent and U.S. Treasuries earned 2.7 percent.