Pound Drops Amid Risk Aversion
August 11 2017 - 1:18AM
RTTF2
The British pound weakened against other major currencies in the
European session on Friday, as U.S. President Donald Trump's
rhetoric on North Korea over the past few days made investors risk
averse.
The U.K.'s FTSE 100 index is currently down 1.15 percent or
84.85 points at 7,305, France's CAC 40 index is down 1.16 percent
or 59.21 points at 5,056 and Germany's DAX is down 0.54 percent or
64.44 points at 11,949.
Commodity-related stocks were among the worst performers against
the backdrop of heightened political uncertainty after Trump
further ratcheted up the rhetoric, suggesting that his "fire and
fury" comments may not have been tough enough.
The president said "things will happen to them they never
thought possible" should Pyongyang attack the United States or its
allies.
In the Asian trading today, the pound had risen against its
major rivals.
In the European trading, the pound fell to nearly a 2-month high
of 141.26 against the yen and more than a 2-week high of 1.2452
against the Swiss franc, from early highs of 141.87 and 1.2501,
respectively. If the pound extends its downtrend, it is likely to
find support around 139.00 against the yen and 1.22 against the
franc.
Against the euro and the U.S. dollar, the pound dropped to
0.9069 and 1.2968, from early highs of 0.9051 and 1.2999,
respectively. The pound may test support near 0.91 against the euro
and 1.27 against the greenback.
Looking ahead, U.S. CPI for July and U.S. Baker Hughes rig count
data are due to be released in the New York session.
At 9:40 am ET, Federal Reserve Bank of Dallas President Robert
Kaplan is expected to speak about economic conditions and monetary
policy at an annual continuing education event for accounting
professionals, in Arlington.
At 11:30 am ET, Federal Reserve Bank of Minneapolis President
Neel Kashkari is expected to speak at the Independent Community
Bankers of Minnesota Annual Convention.
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