Pound Rebounds As U.K. PM May Pledges To Fight Vote On Leadership
12 Dicembre 2018 - 07:50AM
RTTF2
The pound climbed against its major counterparts in the early
European session on Wednesday, after U.K. Prime Minister Theresa
May asserted that she would battle no confidence vote on her
leadership, scheduled to be held at the House of Commons today
evening.
The PM will be thrown out of power if 158 of her 315
Conservative MPs vote against her.
The ballot will be held between 6-8 pm this evening and the
votes will be counted shortly after.
Graham Brady, the chair of the powerful 1922 committee, called a
vote of no confidence in the PM after 48 letters seeking a
leadership contest have been submitted to him.
Shortly after the announcement of no confidence vote, May said
that she would fight for her leadership with everything she has
got.
Investor sentiment also lifted up amid optimism about U.S.-China
trade talks.
The resumption of talks between the U.S. and China and Donald
Trump's positive remarks about a deal being struck buoyed global
shares.
The currency has been trading higher against its major rivals in
the Asian session, excepting the euro.
The pound advanced to 0.9025 against the euro, following a
decline to a session's low of 0.9069 at 2:30 am ET. The next
possible resistance for the pound is seen around the 0.89
region.
Figures from Eurostat showed that Eurozone's industrial
production grew in October after a slump in the previous month.
Industrial production rose 0.2 percent from September, when it
declined 0.6 percent, which was revised from 0.3 percent. The
growth was in line with economists' expectations.
Having dropped to an 8-month low of 1.2477 against the greenback
at 2:35 am ET, the pound reversed direction and reached as high as
1.2551. The pound is seen finding resistance around the 1.27
level.
The pound appreciated to 1.2462 against the franc, after falling
to 1.2395 at 5:00 pm ET. If the pound rises further, 1.26 is
possibly seen as its next resistance level.
Reversing from an early 2-day low of 141.51 against the yen, the
pound edged up to 142.40. The pound is likely to find resistance
around the 144.00 level.
Data from the Bank of Japan showed that Japan producer prices
fell 0.3 percent on month in November.
That missed expectations for a decline of 0.1 percent following
the 0.4 percent increase in October.
Looking ahead, U.S. CPI for November and monthly budget
statement for November are scheduled for release in the New York
session.
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