Pound Advances As Parliament To Vote On Brexit Delay
04 Settembre 2019 - 9:10AM
RTTF2
The pound spiked up against its major counterparts in the early
European session on Wednesday, as a bill seeking Brexit delay is
set to vote in the Commons after Prime Minister Boris Johnson lost
control of Parliament.
Tory rebels and opposition MPs voted last night in favor of
debating the bill, which is seen passing today.
The legislation forces the PM to ask for a Brexit extension from
Brussels until January 31, except MPs approve a new deal, or vote
on a no-deal Brexit, by October 19.
No 10 said he will seek a snap general election, to be held on
October 15.
The Labour leader Jeremy Corbyn confirmed that his party would
not vote for an election unless no-deal Brexit is ruled.
Data from IHS Markit showed that the UK service sector growth
remained subdued in August reflecting slower growth in output and
new orders.
The IHS Markit/Chartered Institute of Procurement & Supply
Purchasing Managers' Index fell more-than-expected to 50.6 in
August from 51.4 in July. The reading was forecast to drop to
51.0.
The currency has been trading higher against its major
counterparts in the Asian session.
The pound strengthened to a 5-day high of 1.2197 versus the
dollar, after falling to 1.2082 at 5:00 pm ET. The pair had closed
yesterday's deals at 1.2082. The pound is likely to find resistance
around the 1.27 level.
The pound hit a 5-day high of 129.51 against the yen, following
a decline to 127.94 at 5:00 pm ET. At yesterday's trading close,
the pair was quoted at 127.94. On the upside, 136.5 is likely seen
as the next resistance level for the pound.
The latest survey from Jibun Bank showed that Japan services
sector activity accelerated in August, with a PMI score of
53.3.
That's up from 51.8 in July and it moves further above the
boom-or-bust line of 50 that separates expansion from
contraction.
Reversing from a low of 1.1918 seen at 5:00 pm ET, the pound
firmed to a 2-day high of 1.2016 versus the franc. At Tuesday's
close, the pair was worth 1.1923. The pound is seen facing
resistance around the 1.25 level.
Following a decline to 0.9081 at 5:45 pm ET, the pound climbed
to a 2-day high of 0.9032 against the euro. The pair had ended
yesterday's trading session at 0.9078.The next possible resistance
for the pound is seen around the 0.88 level.
Data from IHS Markit showed that the euro area private sector
logged a moderate growth in August, though the pace of expansion
improved slightly more than initially estimated.
The final composite output index rose to 51.9 in August from
51.5 in July. The flash score was 51.8. Any reading above 50
indicates expansion in the sector.
Looking ahead, U.S. and Canadian trade data for July and Fed
Beige book report are slated for release in the New York
session.
The Bank of Canada will announce its interest rate decision at
10:00 am ET. The BoC is widely expected to keep its policy rate
steady at 1.75 percent.
Grafico Cross Sterling vs Yen (FX:GBPJPY)
Da Mar 2024 a Apr 2024
Grafico Cross Sterling vs Yen (FX:GBPJPY)
Da Apr 2023 a Apr 2024
