Economists at ING analyze GBP outlook after the release of the RICS UK house price data survey.
Housing market pessimism starting to show
The RICS UK house price data survey showed the biggest depression on UK house prices since early 2009. It will be interesting to see if this starts to feed more into UK consumer confidence and spending. We also expect this to weigh on BoE cycle pricing, with another 50 bps tightening still in sight.
EUR/GBP seems happy to trace out an 0.8600-0.8650 range for the time being. But we are happy with our upside bias towards the 0.88 area for later in the year.
