Pound Trades Lower On Brexit Worries
16 Settembre 2019 - 10:43AM
RTTF2
The pound traded lower against its major counterparts in the
European session on Monday, as U.K. Prime Minister Boris Johnson
and European Commission President Jean-Claude Juncker are meeting
in Luxembourg with no hopes for a major breakthrough in Brexit
talks.
The possibility of a breakthrough is less, unless Johnson
presents new Brexit proposals to Juncker.
Ahead of his meeting with Juncker, Johnson insisted that he
would stick to the October 31 deadline, irrespective of whether an
agreement is reached.
"We will leave by that date - deal or no deal. Yes, it may now
be harder to get a deal, since MPs seem set on tying the
Government's hand behind its back," Johnson wrote in The
Telegraph.
Juncker dismissed the possibility of reopening the withdrawal
deal and cautioned that 'time is running out'.
European stocks fell as key data from China disappointed and
attacks on Saudi Arabia's oil facilities raised geopolitical
risks.
Chinese industrial output growth unexpectedly weakened to 4.4
percent in August from the same period a year earlier, the slowest
pace since February 2002 and down from 4.8 percent in July.
Retail sales and investment figures also disappointed amid
rising trade pressure and softening domestic demand.
The pound dropped to 1.2426 against the greenback, from a high
of 1.2503 hit at 7:15 pm ET. The pound is seen finding support
around the 1.21 mark.
Having climbed to 134.86 against the yen at 6:00 pm ET, the
pound reversed direction and declined to 133.88. Next key support
for the pound is likely seen around the 130.5 level.
The pound edged down to 1.2301 against the franc from Friday's
closing value of 1.2369. Should the pound falls further, it is
likely to face support around the 1.21 region.
In contrast, the pound appreciated to 0.8850 against the euro,
its strongest since June 7. The pound is poised to challenge
resistance around the 0.86 mark.
Looking ahead, Canada existing home sales for August are due in
the New York session.
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