UK housing data knocks pound to all-time low vs euro
The pound slid to an all-time low versus the euro and lost ground to the dollar on Friday as soft house price and consumer confidence data pointed to a UK economic slowdown.
British house prices fell for a fifth straight month in March, bringing the annual increase to its lowest in 12 years and showing a key driver of the UK economy is faltering.
UK consumer morale fell to its lowest level in more than 15 years in March as households grew more gloomy about the economic outlook than at any time since the downturn of the early 1990s.
"Overall, it's further evidence that things in the UK are continuing to slow down, the housing market is continuing to slow and it is having an impact on consumer confidence," said Ian Stannard, senior foreign exchange strategist at BNP Paribas.
By 0828 GMT, the euro had risen as high as 79.14 pence, up more than 0.6 percent on the day and 7.5 percent so far this year.
The pound was down 0.7 percent at $1.9941 and matched last week's 11-year troughs on the Bank of England's trade weighted measure, at 93.1.
Bank of England policymaker Charles Bean told parliamentarians on Wednesday that the risks to sterling were on the downside given the size of Britain's current account deficit also undermining sentiment on the currency.
UK current account data are due at 0930 GMT and are forecast to show a deficit of 18 billion pounds in the fourth quarter.
Markets are now pricing in two interest rate cuts from 5.25 percent by year-end FSSZ8.
Sourced by Reuters.