August’s RICS House Price Balance data strengthened to 1%, well ahead of July’s –18% and the forecast of –14%, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP is consolidating for the time being

“The data (reflecting the difference between agents reporting higher house prices minus those reporting a fall) was the strongest in close to two years. Details in the report were strong as well, suggesting that expectations of lower interest rates has given the UK housing market a significant lift.”

“Cable is holding a narrow range well withing yesterday’s spot range. This implies some moderation at least in short-term pressure on the pound. Support is 1.3000 intraday while resistance is 1.3110.”