Pound Advances On Brexit Deal Hopes
October 15 2019 - 1:46AM
RTTF2
The pound drifted higher against its major counterparts in the
early European session on Tuesday, as investors cheered comments
from EU negotiator Michel Barnier suggesting that a Brexit deal
could be reached this week.
Speaking in Luxembourg, Barnier said that a deal with Britain
over the terms of their divorce is still possible this week.
Barnier, however, struck a cautiously upbeat note, saying more
tough talks are still needed.
Data from the Office for National Statistics showed that the UK
unemployment increased and employment declined in three months to
August.
The number of people in work fell 56,000 to 32.69 million and
the level of unemployment increased by 22,000 to 1.31 million in
three months to August.
The currency fell against its major counterparts in the Asian
session.
The pound advanced to a 4-day high of 137.58 against the yen,
from a low of 136.52 seen at 8:30 pm ET. Next immediate resistance
for the pound is seen around the 142.5 level.
Final data from the Ministry of Economy, Trade and Industry
showed that Japan's industrial production declined in August as
initially estimated.
Industrial production dropped 1.2 percent month-on-month in
August, reversing a 1.3 percent rise in July. That was in line with
the preliminary estimate.
Having dropped to 1.2598 against the greenback at 5:00 pm ET,
the pound reversed direction, touching a 4-day high of 1.2698. The
pound is seen locating resistance around the 1.30 level.
The pound strengthened to 1.2666 against the Swiss franc for the
first time since June 12. The currency may possibly challenge
resistance around the 1.30 level.
Data from the Federal Statistical Office showed that
Switzerland's producer and import prices declined at a
faster-than-expected rate in September.
The producer and import prices declined 2.0 percent year-on-year
in September. Economists had expected a 1.7 percent fall.
The pound spiked higher to 0.8690 against the euro, its biggest
since May 15. Should the pound rallies further, it is likely to
test resistance around the 0.84 mark.
Looking ahead, Canada existing home sales for September and New
York Fed's Empire manufacturing survey for October will be featured
in the New York session.
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