Housing prices resumed their rally in August. According to Nationwide Building Society, the rally was backed by better conditions in the UK labor market and affordable purchases of residential property.
The index gained 1.3 (m/m) and dropped 0.7% (y/y).
Despite the fact that the British economy is still suffering from recession, the labor market says surprisingly stable.
The new schemes of credit financing introduced by the Bank of England and the Exchequer are expected to support the housing price rally.
However, some experts say that higher activity in the market of residential property is (and will be) mainly caused by lower unemployment and positive tendencies in the labor market.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of GBPUSD. The currency pair is forming an upswing represented by wave A/B of level H16.
A further rally will probably encounter resistance around 1.5911. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.5777 (as shown below).
