GBP declined. Overview for 07.06.2023

The British pound sterling has reversed down against the US dollar. The current GBPUSD quote is 1.2409.

Fresh statistics from Halifax show that property prices in the UK have fallen for the first time since 2012. According to the May data, average real estate prices have dropped by 1.0% y/y.

The decrease in housing prices is a negative signal for the British economy and the pound. It means that purchasing activity has slowed to such an extent that property owners are deciding to lower prices in order to remain in the market and be able to sell.

Housing in the UK is traditionally expensive, so this fact is indeed alarming. The pound has dropped because these statistics are likely to reveal more negative details.