Pound Advances On News Of Brexit Breakthrough
September 05 2018 - 7:03AM
RTTF2
The pound strengthened against its major counterparts in the New
York session on Wednesday, following a media report that Germany
has indicated its willingness to offer a major compromise on Brexit
deal, with an aim to clinch to deal in the coming months.
Germany is ready to "accept a less detailed agreement on the
UK's future economic and trade ties with the EU in a bid to get a
Brexit deal done," according to a report from Bloomberg.
The U.K. has also consented for a vaguer statement of intent on
the future relationship and defer some decisions until after Brexit
day, it said.
Final data from IHS Markit showed that the euro area private
sector expanded slightly more than initially estimated in
August.
The composite output index rose to 54.5 in August from July's
54.3. The score was marginally above the flash estimate of
54.4.
The currency was lower in the European session amid risk
aversion.
The pound advanced to 5-day highs of 0.8956 against the euro and
1.2983 against the greenback, from its early weekly low of 0.9052
and more than a 2-week low of 1.2785, respectively. If the pound
rises further, 0.88 and 1.32 are likely seen as its next resistance
levels against the euro and the greenback, respectively.
The pound hit 6-day highs of 144.97 against the yen and 1.2625
against the franc, off its early low of 142.66 and a 1-year low of
1.2459, respectively. The next possible resistance for the pound is
seen around 147.00 against the yen and 1.28 against the franc.
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Aug 2024 to Sep 2024
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Sep 2023 to Sep 2024