pushing the currency to significant levels against its US

British Pound Finishes the Year Strong on Housing DataThe pound rallied hard for a second day Thursday, pushing the currency to significant levels against its US, European and Japanese counterparts. However, this last push before the market tunes out may struggle to find momentum when larger-term fundamental trends are back on track. Today’s event risk offered a small sign of hope for the struggling UK economy. The Nationwide House Prices indicator rose for an eighth month with a 0.4 percent increase for the month of December. Economists for the group ascribe the increase in prices to the lack of supply in the market; and this data further confirms last week’s BBA report that mortgage lending is near a two-year high. Yet, the United Kingdom’s problems run deeper than simply patching the housing sector. Consumer spending is still absent, the possibility of a political regime change threatens to snuff the progress that recent policy has afforded and lending is anemic.