Pound Falls On Brexit Concerns
October 14 2019 - 1:51AM
RTTF2
The pound slipped against its major counterparts in the European
session on Monday, amid renewed uncertainty over Brexit, as the
UK-EU officials said over the weekend that a lot more work would be
needed to secure a Brexit agreement.
Following intensive talks in Brussels, the EU chief Brexit
negotiator Michel Barnier said that there remained "a big gap" over
customs arrangements.
Hopes for a breakthrough in talks dimmed as both sides remained
far apart on customs and the Irish border.
European shares fell as weak data from China prompted traders to
book some profits after strong gains in the previous session.
China's import and export figures for September both came in worse
than expected, adding to concerns about slowing economic
growth.
The currency has been trading in a negative territory against
its major counterparts in the Asian session.
The pound declined to 135.68 against the yen, from a high of
137.17 seen at 6:45 pm ET. The currency is likely to face support
around the 134.00 level.
The pound reversed from an early high of 1.2645 against the
greenback, falling to 1.2550. Next near term support for the pound
is likely seen around the 1.24 level.
After an uptick to 1.2617 against the franc at 7:00 pm ET, the
pound slipped to 1.2487. On the downside, 1.23 is likely seen as
the next support level for the pound.
The pound edged down to 0.8795 against the euro, following an
advance to 0.8724 at 5:00 pm ET. The currency may find support
around the 0.90 mark, if it weakens further.
Data from Eurostat showed that Eurozone industrial production
expanded in August after easing for two straight months.
Industrial output grew 0.4 percent month-on-month, offsetting a
0.4 percent fall in July. This was the first rise in three
months.
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