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Pound approaches month low vs. Dollar before House-Price Data

Pound approaches month low vs. Dollar before House-Price Data

The pound weakened for a third day against the dollar, approaching the lowest level in a month, before a report economists said will show U.K. house prices were unchanged last month. It has also been reported that buyers are still apprehensive about the economy and a lack of mortgage availability meant the property market remained stiff last year. The pound declined against the dollar as a report showed house prices fell last month, signalling the U.K.’s economic recovery will be slow.

Also, the Euro eased lower against the U.S. Dollar on Monday as the greenback remain supported despite data on Friday indicating that the recovery in the U.S. labour market may be moderating. In the US, employment increased but at a slightly slower pace than the previous month. Payrolls rose by 155,000 in December, following a revised 161,000 increase in November, with gains in employment distributed broadly throughout the economy. The jobless rate ended 2012 at 7.8%, down from 8.5% in December 2011. The Federal Reserve is unlikely to view this growth as indicative of a “substantial” improvement in the employment outlook and sufficient to amend policy.

On the FX markets, EUR/USD was under pressure on Friday slipping to a low of $1.2997 before recovering back above the $1.30 level after the positive US jobs data saw a modest uplift in risk appetite. GBP/USD also came under pressure on Friday slipping to a low of $1.6008 but recovered lost ground and is currently trading at the $1.6040 level.

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