Pound Lower On Brexit Uncertainty
October 23 2019 - 2:34AM
RTTF2
The pound came under pressure against its major opponents in the
European session on Wednesday, as Brexit concerns intensified after
U.K. lawmakers rejected Prime Minister Boris Johnson's proposed
timetable to push through the deal before the October 31
deadline.
MPs approved PM's Brexit deal on Tuesday but voted against his
plan to get it signed off in three days.
The PM has indicated that the will seek a new election, if the
European Union grants a delay until January.
European Council President Donald Tusk tweeted Tuesday that he
will urge the other 27 EU nations to approve an extension to the
Oct. 31 Brexit deadline. Britain wants a three-month delay until
the end of January 2020.
The pound fell back to 1.2843 against the greenback, not far
from a 5-day low of 1.2841 hit in the Asian session. The currency
is likely to find support around the 1.27 mark, if it weakens
further.
Extending early decline, the pound declined to a 2-day low of
1.2703 against the franc. Next near term support for the currency
is likely seen around the 1.25 level.
The pound slipped to 0.8660 against the euro, setting a 2-day
low. Should the currency slides further, 0.88 is likely seen as its
next support level.
The pound declined to a 6-day low of 139.08 against the yen and
held steady thereafter. The currency is seen finding support around
the 136.5 level.
Looking ahead, Canada wholesale sales and U.S. house price index
for August are due in the New York session.
At 10:00 am ET, Eurozone flash consumer sentiment for October is
set for release.
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