Pound Falls On PM Johnson's Hard Talk On Future Trade Deal
03 Febbraio 2020 - 8:03AM
RTTF2
The pound depreciated against its major trading partners in
early European deals on Monday, as fears over a hard Brexit
resurfaced after UK Prime Minister Boris Johnson warned that he was
prepared to walk away from talks with the European Union, if he did
not get a free trade agreement.
In a speech to business leaders and international diplomats in
London, the PM said that he wanted a free-trade agreement similar
to the terms the bloc has with Canada, imposing no tariffs or
quotas on trade in goods.
Britian would be ready to take a looser arrangement like
Australia's if talks fail, he said.
Johnson said that he would not accept alignment with key EU
rules, putting on a collision course with Brussels.
Setting for a showdown with the EU, Johnson threatened to walk
away from talks if no agreement is reached.
The pound showed mixed performance in the Asian session. While
it fell against the greenback and the franc, it held steady against
the euro and the yen.
The pound dropped to a 4-day low of 141.57 against the yen, from
a high of 143.11 hit at 8:30 pm ET. The pound is seen finding
support around the 139.00 region.
Survey from the IHS Markit showed that Japan manufacturing
sector continued to contract in January, albeit at a slightly
slower rate, with a manufacturing PMI score of 48.8.
That's up from 48.4 in December, although it remains beneath the
boom-or-bust line of 50 that separates expansion from
contraction.
The pound fell to 1.2590 against the franc, its lowest since
January 21. The next likely support for the pound is seen around
the 1.24 level.
The U.K. currency weakened to 1.3054 against the dollar, setting
a 4-day low. Further drop in the pound is likely to test support
around the 1.28 region.
The pound dipped to a 4-day low of 0.8478 against the euro from
last week's closing value of 0.8402. On the downside, 0.86 is
possibly seen as the next support level for the pound.
Looking ahead, Markit's U.S. final manufacturing PMI for
January, construction spending for December and ISM manufacturing
index for January are set for release in the New York session.
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
