Published by Jamie JemmesonHouse prices in the UK fell during January, the latest figures from Nationwide reveal.The drop in prices, coupled with an uncertain outlook, could affect the performance of the pound on the foreign exchange market, as house price movement gives a good reflection of the strength of the overall economy.An annual price change of -1.1 per cent was recorded by the building society. The monthly change was -0.1 per cent.Chief economist at Nationwide Robert Gardner said: "January's data does little to alter the picture of a sluggish market that has been evident since the summer."He added that while the path for future prices is currently "highly uncertain", the most likely trend will consist of low transaction levels and prices "moving sideways or modestly lower".Mr Gardner said that the current high level of inflation is also like to have an effect on house prices over the course of 2011, with the market continuing to operate at a slow pace. Current CPI inflation in the country is 3.7 per cent.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site