Sterling is leading the broad-based rally against a weaker Dollar, thanks in part to stronger-than-expected UK house prices in March. The Halifax index was up 1.5% month-on-month and 3.7% year-on-year, taking growth in Q1 2018 to 2.7% yoy. This suggests that while growth in UK house prices is clearly far weaker than before the June 2016 referendum (about 9% yoy) it appears to have stabilised in Q1. At the margin this increases the odds of the Bank of England hiking interest rates at its May policy meeting.
