Pound Higher After Report Of Possible Delay To Brexit

By | January 11, 2019

The pound was greater versus its major counterparts in the European session on Friday, following a media report indicating the possibility of delaying Brexit beyond March 29.

The Evening Standard reported that the U.K. cabinet ministers believe that Brexit might be postponed beyond the scheduled exit of March 29.

A backlog of at least 6 important Bills, including the migration expense, need to be passed before the U.K.’s departure from the European Union.

Even asking MPs to sit at weekends and cancel their half-term holiday in February might not offer enough time to avoid asking for a delay, the report showed.

Additional underpinning the currency was much better was expected GDP data for November.

Data from the Office for National Stats showed that UK financial growth improved for a second straight month in November, led by services and building growth, and exceeded financial experts’ expectations.

Gdp grew 0.2 percent from October, when the economy broadened 0.1 percent. Economists had expected the pace of development to stay the same. In September, GDP stagnated.

The currency traded mixed versus its major counterparts in the Asian session. While the pound held stable against the franc and the yen, it rose against the greenback. Versus the euro, it dropped.

The pound enhanced to a 2-day high of 0.8980 versus the euro, from an 8-day low of 0.9062 hit at 4:00 am ET. The pound is seen finding resistance around the 0.88 level.

Having actually declined to a 2-day low of 1.2710 versus the greenback at 4:00 am ET, the pound reversed instructions and advanced to a 1-1/2-month high of 1.2850. The next possible resistance for the pound is seen around the 1.30 mark.

The pound firmed to an 11-day high of 1.2615 versus the Swiss franc, following a decline to 1.2481 at 4:00 am ET. The pound is poised to challenge resistance around the 1.29 mark.

Bouncing off from an early low of 137.64 against the yen, the pound increased up to a 3-day high of 139.14. If the pound rises even more, 143.00 is potentially viewed as its next resistance level.

Information from the Ministry of Financing showed that Japan had a current account surplus of 757.2 billion yen in November. That surpassed expectations for a surplus of 566.3 billion yen and was below 1,309.9 billion yen in October.

The trade balance reflected a deficit of 559.1 billion yen versus expectations for a shortage of 612.6 billion yen, following the 321.7 billion yen deficit in the previous month.

Looking ahead, U.S. CPI and monthly budget plan statement for December are set up for release in the New york city session.

The product has actually been supplied by InstaForex Company – www.instaforex.com

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