Pound Higher As No-deal Brexit Fears Recede
13 Settembre 2019 - 10:23AM
RTTF2
The pound strengthened against its major counterparts in the
European session on Friday, as fears over a no-deal Brexit reduced
following a media report showing progress in contentious Irish
backstop clause.
The Times reported that the DUP had agreed to soften its stance
on a Northern Ireland only backstop to help unlock a deal.
The DUP leader Arlene Foster dismissed the report, saying that
he would not support a deal that divide the internal market of the
U.K.
But sources do not exclude the possibility of a deal, if it
would be backed up by a legally binding guarantee for the DUP.
Boris Johnson will meet European Commission President
Jean-Claude Juncker in Luxembourg next week.
Markets welcomed indications of easing trade tensions between
the US and China.
U.S. President Donald Trump said he could consider an interim
trade deal with China ahead of high-level negotiations in
October.
Sentiment lifted up after the European Central Bank slashed
interest rates for the first time since 2016 and unveiled a
sweeping stimulus package to boost growth in the ailing euro
zone.
The currency has been trading in a positive territory against
its major counterparts in the Asian session, excepting the
euro.
The pound appreciated to 1.2476 against the greenback, its
biggest since July 25. At yesterday's close, the pair was worth
1.2329. Should the pound strengthens further, it is likely to face
resistance around the 1.27 region.
The pound spiked up to a 7-week high of 134.71 against the yen
from yesterday's closing value of 133.31. The pound is likely to
challenge resistance around the 136.5 region.
Final data from the Ministry of Economy, Trade and Industry
showed that Japan's industrial production expanded as estimated in
July.
Industrial production rose 1.3 percent month-on-month in July,
in line with the preliminary estimate.
The U.K. currency strengthened to 1.2317 against the franc, a
level unseen since July 26. The pair had closed Thursday's deals at
1.2206. The pound is seen finding resistance around the 1.25
mark.
Having declined to a 3-day low of 0.8974 against the euro at
9:15 pm ET, the pound reversed direction and edged higher to
0.8899. The pound is poised to challenge resistance around the 0.86
mark.
Data from Eurostat showed that the euro area trade surplus
increased in July on higher exports.
The trade surplus rose to a seasonally adjusted EUR 19 billion
from EUR 17.7 billion in June.
Looking ahead, U.S. retail sales and export and import prices
for August, business inventories for July and University of
Michigan's consumer sentiment index for September are slated for
release in the New York session.
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