Pound Up As Brexit Party Decides To Stand Down Candidates In Tory Seats
November 11 2019 - 04:38AM
RTTF2
The pound appreciated against its key counterparts in the
European session on Monday, as the Brexit Party leader Nigel Farage
announced that the party would not stand in previously Conservative
held seats at the upcoming general election to boost Johnson's
chances of a majority win.
Speaking in Hartlepool, Brexit party leader Farage said that the
Brexit Party would not contest the 317 seats the Conservatives won
at the last election in a bid to "prevent the risk of a second
Brexit referendum".
Farage's decision is likely to boost prospects of Johnson making
the gains he needed to win a majority.
Johnson welcomed Farage's decision, saying that another
gridlocked hung Parliament is the greatest threat to get Brexit
done.
Data from the Office for National Statistics showed that the UK
economy recovered in the third quarter driven by services and
construction.
Gross domestic product grew 0.3 percent sequentially in the
third quarter after contracting 0.2 percent in the second
quarter.
The currency showed mixed trading against its major counterparts
in the Asian session. While it fell against the yen and the franc,
it was steady against the euro and the greenback.
The pound spiked up to a 6-day high of 1.2898 against the
greenback from Friday's closing value of 1.2773. Next key
resistance for the pound is seen around the 1.30 level.
The pound climbed to a 4-day high of 140.48 against the yen,
after falling to a 2-week low of 139.37 at 1:15 am ET. The pound is
seen locating resistance around the 142.5 level.
Data from the Cabinet Office showed that Japan core machinery
orders declined unexpectedly in September.
Core machinery orders, a leading indicator of private capital
investment, declined 2.9 percent month-on-month, following a 2.4
percent drop in August.
The U.K. currency strengthened to 1.2819 against the franc, its
biggest since October 29. On the upside, 1.31 is likely seen as its
next resistance level.
The pound moved up to 0.8558 against the euro, a level unseen
since May 6. The currency is likely to locate resistance around the
0.84 level, if it rallies again.
Data from Destatis showed that Germany's wholesale prices
declined at the fastest pace in more than three years in
October.
Wholesale prices fell 2.3 percent year-on-year in October,
following a 1.9 percent drop in September. This was the biggest
annual fall since May 2016.
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