Pound Falls On Brexit Concerns
November 18 2020 - 9:31PM
RTTF2
The pound lost ground against its major counterparts in the
Asian session on Thursday, after a media report showed that
European leaders are considering no-deal Brexit plans due to the
lack of progress on key sticking points.
The Times reported that EU leaders are concerned that businesses
and fishing communities will be hit by economic disruption without
EU contingency measures to cushion the blow of no-deal.
Time is running out for a deal with the two sides "still quite
far apart".
"We must now come up with contingency measures. January 1, 2021
is getting close; we need a safety net," the report showed, citing
an EU official.
Both sides are "nowhere near" agreeing on fishing rights as
hardline member states, led by France's Emmanuel Macron, are
demanding the same level of access to the waters after Brexit.
The pound fell to a 10-day low of 137.20 against the yen from
Wednesday's closing value of 137.72. Next key support for the pound
is seen around the 135.00 level.
The pound weakened to a 2-day low of 1.3224 against the
greenback, compared to 1.3267 hit late New York Wednesday. On the
downside, 1.28 is possibly seen as its next support level.
The pound that ended Wednesday's trading at 1.2088 against the
franc depreciated to a 2-day low of 1.2049. The pound is likely to
test support around the 1.19 level, if it drops further.
The U.K. currency reached as low as 0.8958 against the euro,
compared to yesterday's closing value of 0.8928. The next possible
support for the pound is seen around the 0.92 level.
Looking ahead, Eurozone current account and construction output
for September are due in the European session.
The U.S. weekly jobless claims for the week ended November 14
and and existing home sales for October will be featured in the New
York session.
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