Data released earlier revealed that despite a generally subdued UK housing market, activity remains resilient. The Rightmove Housing Price Index found that there is still robust demand from would-be buyers, especially in the family home sector. Prices of new-to-the market properties increased by an average of 1.1 per cent in April, which is the largest month-on-month rise for over a year. The rise was also the largest at this time of the year since 2016.
Commenting on the data was Rightmove Director and Housing Market Analyst Miles Shipside.
He said: “The rise in new seller asking prices reflects growing activity as the market builds momentum, egged on by the arrival of Easter.
“Some sectors of the market and some parts of the country have strong buyer demand and a lack of suitable supply.”
Meanwhile, on Sunday, Cabinet Minister David Lidington said that the government and Labour are “testing out” each other’s ideas in an attempt to break the Brexit deadlock.
Speaking to the BBC, Mr Lidington said that the two sides had a “fair bit in common” over customs objectives, however further compromise was needed.
While the cross-party talks do not have a set deadline, it is said the Conservatives and Labour would “take stock” in ten days and the process would not be dragged out.
This sparked some fresh Brexit optimism in markets, however it could do little to buoy the pound against the euro.
This afternoon, the pound could dip against the euro following a speech from the Bank of England’s Jonathan Haskel.
If Mr Haskel’s tone is largely dovish and focuses on the continued Brexit uncertainty, the pound could suffer.
Looking ahead to the start of Tuesday’s session, the euro could slide following the release of Germany’s ZEW economic sentiment survey.
If data reveals that economic sentiment has slipped from -3.6 to -11 in April, as expected, the single currency is likely to take a hit.