UK house prices rose in February at the fastest annual pace since October, according to data released on Friday. Halifax reported that prices were 1.3% higher than a year earlier, exceeding the 0.9% forecast and up from the 1.1% annual increase recorded in January. The February reading marked the strongest yearly growth since October.

On a monthly basis, house prices increased by 0.3% in February, in line with expectations but below the 0.8% rise seen in January.

The Bank of England is expected to keep interest rates unchanged at 3.75% this month after leaving them on hold in February.

Like the euro, the pound has also weakened against the U.S. dollar, though at a more moderate pace. For now, the market appears to have found a balance zone roughly in the 1.3280–1.3380 range. Volatility could pick up again with the release of U.S. economic data later on Friday.