By David Liu,

THE TAKEAWAY : Longer term house prices grow slower > Decreases rate hike expectations, BoE continues easing > Pound weakens

The Sterling continued softening against the greenback following last week’s unexpected GBP75 billion increase in the Bank of England’s asset purchase program. Lower than previous housing prices in October’s Rightmove survey suggest a continued road of easing.

EVENT

ACT

EXP

PREV

Rightmove House Prices (YoY)

2.8%

-

0.7%

Rightmove House Prices (MoM)

1.2%

-

1.5%

The pound continued to soften into early Asian session trading as risk appetite continued to pull price action. Despite higher Asian markets and US equity futures, traders are keeping in mind the Bank of England’s rhetoric to continue easier monetary policy. Pressure is continuing on the sterling as safe haven flows continue to flow towards the dollar.

GBPUSD 5 minute chart; vertical line indicates time of data release.
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Original Article: http://www.dailyfx.com/forex/market_alert/2011/10/17/Pound_Sterling_Softens_on_Easing_Expectations.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.