2014.10.2022:19:28UTC+00Pound escalates to 1-week peak as home prices, confidence climb

The British pound advanced to a one-week high versus the US dollar following reports showed UK home prices climbed for a second month in October and consumer confidence rose.

Sterling gained 0.2% to $1.6129 after hitting $1.6151, the highest since October 9. The pound dropped to $1.5875 on Oct. 15, a level not noticed since November. Against the euro, the currency increased 0.1% to 79.22 pence.

“It’s seeing a short-term resurgence. It’s a slightly more positive risk environment and I guess the underlying theme is still going to be data-driven,” said Jeremy Stretch, Head of Foreign-Exchange Strategy at Canadian Imperial Bank of Commerce.

UK home prices accelerated 2.6% in October, taking the annual gain throughout Britain to 7.6%. Also, consumer confidence in the third quarter went up three points against last year, according to the Deloitte Consumer Tracker, the highest since the survey started in 2011.