Pound Slides Ahead Of Queen's Speech
June 21 2017 - 1:33AM
RTTF2
The British pound weakened against other major currencies in the
European session on Wednesday, as investors awaited the Queen's
speech expected to set out the government's agenda for the next
session of parliament.
According to Prime Minister Theresa May's office, Queen
Elizabeth II's speech will contain a number of proposals to make
Brexit successful.
In economic releases, the British budget deficit reached the
lowest for the month of May since 2007, figures from the Office for
National Statistics showed.
Public sector net borrowing excluding public sector banks
decreased by GBP 0.3 billion from previous year to GBP 6.7
billion.
Tuesday, the British pound fell after Bank of England Governor
Mark Carney downplayed the possibility of an interest rate increase
anytime soon.
In the Asian trading today, the pound held steady against its
major rivals.
In the European trading, the pound fell to more than a 2-month
low of 1.2589 against the U.S. dollar and a 6-day low of 139.85
against the yen, from early highs of 1.2635 and 140.83,
respectively. If the pound extends its downtrend, it is likely to
find support around 1.24 against the greenback and 137.00 against
the yen.
Against the euro and the Swiss franc, the pound dropped to 8-day
lows of 0.8845 and 1.2266 from early highs of 0.8811 and 1.2319,
respectively. The pound may test support near 0.89 against the euro
and 1.21 against the franc.
Looking ahead, at 7:00 am ET, Bank of England Chief Economist
Andy Haldane is expected to speak in Yorkshire.
In the New York session, U.S. existing home sales data for May
and U.S. crude oil inventories data are slated for release.
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