Euro vs. Dollar steady, U.S House Prices rise
The Euro held steady above a two-week low, but it could encounter more selling pressure as the soft euro-zone data has strengthened expectations of an interest rate cut by the European Central Bank. German business confidence possibly fell for the second month in April. An estimate of industrial output indicated a contraction, after the coldest March in 25 years impacted greatly on German growth, raising the risk that the economy fell into a recession.
Meanwhile, the Bank of England and the Treasury are required to inject new life into the economy today, by giving banks greater incentives to lend to small and medium-sized firms. They said a new phase of the Funding for Lending Scheme would be altered greatly towards smaller firms. Banks can get funding from the FLS until the end of January 2015.
Whereas, U.S. house prices increased 7.1 percent in the year through February, the largest gain since 2006, signalling a strengthening recovery as buyers compete for properties. Prices climbed 0.7 percent on a seasonally adjusted basis from January, the Federal Housing Finance Agency said today. Home prices have been increasing as improving employment and lending costs near record lows stimulates demand for a limited supply of properties for sale.