The pound weakened against its major rivals in late Asian deals Wednesday following a report showed that the U.K. house prices fell for a second month in a row in January.
Data from the Nationwide Building Society revealed that the house prices were down 0.2 percent month-on-month in January, the same rate of decline as seen in December, also matched economists' forecast.
At the same time, annual growth in house prices slowed unexpectedly to 0.6 percent from 1 percent in December. The annual rate was forecast to rise to 1.2 percent in January.
Data from a survey by Land Registry showed on Monday that the house prices in England and Wales decreased at a slower pace in December.
The house price index declined 1.3 percent on an annual basis in December, slower than the 2.1 percent decrease seen in November. Prices have been falling regularly since December 2010.
The pound slipped to 1.5709 against the US dollar around 2:35 am ET, down almost 0.6 percent from yesterday's 10-week high of 1.5798. On the downside, 1.5650 is seen as the next likely support level for the cable.
Against the yen, the sterling reached a 2-day low of 119.63 around this time. The pound-yen pair is presently worth 119.75 and a move below Monday's low of 119.62 could set its lowest level since January 23.
The pound that advanced to a 9-day high of 1.4554 against the Swiss franc around 2:00 am ET pared its gains shortly after the house price report. The pound reached as low as 1.4510 against the franc before holding steady around 2:40 am ET. The pair is presently worth 1.450 with 1.45 seen as the next likely support level in the near-term.
The pound that tested yesterday's 8-day high of 0.8283 against the euro in the Asian session reverted to below yesterday's closing quote of 0.8304. The pound is presently worth 0.83 against the euro with 0.8360 seen as the next likely downside target level.
Looking ahead, the Swiss retail sales for December, final PMI reports for January from major European economies and the Eurozone CPI estimate for January are expected in the upcoming session.
The U.S. ISM manufacturing index and ADP employment report - both for January and the construction spending for December are expected in the New York morning session.
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