Pound Within 0.4% of 5-Week Low Versus Euro as Home Prices Stall
This article is for subscribers only.
The pound was within 0.4 percent of a five-week low against the euro after an industry report showed U.K. house prices stagnated this month, adding to evidence Britain’s economic recovery is losing momentum.
Sterling headed for a fourth monthly decline versus the 17-nation currency as a rallies in Spanish and Italian bonds in November, damped demand for the U.K. currency as a haven from Europe’s debt crisis. House values may drop “modestly” over the next year because of subdued wage growth, Nationwide Building Society said. Gilts held gains from yesterday after the Bank of England said overseas investors increased their holdings of U.K. government bonds last month.