Pound Weakens Amid Brexit Worries
02 Dicembre 2020 - 8:36AM
RTTF2
The pound lost ground against its key counterparts in European
deals on Wednesday, as fears over a no-deal Brexit intensified
after EU chief negotiator Michel Barnier reportedly told EU
ambassadors there may be a no-deal outcome.
As British and European Union officials race to strike a
post-Brexit trade deal before the start of next week, Barnier said
that a deal hangs in the balance and a no-deal Brexit cannot be
ruled out.
EU states reportedly told Barnier not to rush into a deal under
the pressure of the December 31 timetable.
The U.K. government said it will not extend transition period
with the EU as talks remain deadlocked on issues related to
fishing, governance rules and dispute resolution.
Brexit worries overshadowed news that the UK had approved the
Pfizer-BioNTech COVID-19 vaccine, will be rolled out from next
week.
U.S. President-elect Joe Biden told the New York Times he'd
leave the phase-one trade deal with China in place while he
conducts a full review of the policy toward China in consultation
with traditional allies in Asia and Europe.
The pound fell to 139.53 against the yen, from near a 3-month
high of 140.45 hit at 2:45 am ET. The pound is likely to challenge
support around the 138.00 level.
The pound depreciated to 1.1995 versus the franc, its lowest
since November 13. If the pound falls further, it may find support
around the 1.14 level.
The pound weakened to more than a 3-week low of 0.9045 against
the euro, after having advanced to 0.8983 at 5:00 pm ET. Next key
support for the pound is seen around the 0.92 mark.
Data from Destatis showed that German retail sales grew more
than expected in October.
Retail sales increased 2.6 percent on a monthly basis, reversing
a 1.9 percent drop in September. Sales were expected to climb only
1.2 percent.
The U.K. currency edged down to 1.3335 against the dollar, after
rising to 1.3441 at 2:45 am ET. The pound is poised to find support
near the 1.30 level.
Looking ahead, U.S. ADP private payrolls data for November is
scheduled for release at 8:15 am ET.
Federal Reserve Chair Jerome Powell testifies on the CARES Act
before the House Financial Services Committee in Washington DC at
10:00 am ET.
The Federal Reserve's Beige book report will be released in the
New York session.
Grafico Cross Sterling vs Yen (FX:GBPJPY)
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Grafico Cross Sterling vs Yen (FX:GBPJPY)
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