Earlier this morning, there were some economic figures from the UK, which came in with another disappointment, showing a clear sign of slowing down and increasing the risk of Brexit fears.
Such figures continue to prove that the Bank of England is still far away from changing its easy policy anytime soon. In fact, the risk is rising toward further easing, especially if the slowing down continues.
Today’s Fundamentals
Beginning with the GfK Consumer Confidence Index, it actually posted its 14th month of consecutive declines at -7 last month compared to -6, which is the weakest reading since more than five months.
Secondly, the House Price Index showed a shocking reading, showing a decline of -0.4%, compared to a decline of -0.3% last month, despite the fact that the estimates were to rise by 0.1%.
This is the second monthly decline in a row, one we have not seen since 2012 and the biggest MoM decline since July of 2012, showing concerning signs of a sharp slowing down in the housing markets.
Finally, the GDP also showed a faster slowing down than expected, growing by 0.3% in the first three months of this year, despite the fact that the estimates were pointing to a growth rate of 0.4%.
Read more: https://www.orbex.com/blog/2017/04/uk-gdp-disappoints-but-gbp-pairs-rises-further/