Pound Strengthens As Report Says EU Parliament Softens Brexit Stance
February 20 2018 - 02:18AM
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The pound climbed against its major counterparts in European
deals on Tuesday, following a media report that the European
Parliament is working on a plan that could retain "privileged"
access to the single market for the U.K.
The 60-page document will have a "very detailed" explanation of
the future relationship that the Parliament wants to keep with
Britain after Brexit, the Business Insider reported.
The European Parliament has outlined its willingness for an
"association agreement" to establish enhanced relationship with the
U.K.
The so called 'association agreement' is a form of arrangement
that could grant U.K. "privileged" single market access and
membership of EU agencies.
The document marks a break from the stance of the EU's chief
Brexit negotiator Michel Barnier, who insisted that no special
deals would be on the table.
Meanwhile, European shares are mixed as investors waited for the
minutes of the latest Federal Reserve meeting for clues on the U.S.
rate outlook.
British manufacturers expect output growth to ease over the next
three months, according to the Industrial Trends Survey from the
Confederation of British Industry.
The total order book balance came in at 10 percent in February,
above its negative long-run average of -14 percent. The export
order book balance also stood at 10 percent.
The currency was trading mixed in the Asian session. While it
rose against the yen and the franc, it held steady against the
euro. Against the greenback, it declined.
The pound advanced to 1.4015 against the greenback, off its
early 6-day low of 1.3932. The pound is poised to challenge
resistance around the 1.43 level.
The pound climbed to a weekly high of 150.20 versus the yen,
from a low of 149.09 hit at 2:30 am ET. The next possible
resistance for the pound is seen around the 153.00 mark.
The pound strengthened to 11-day highs of 1.3098 against the
Swiss franc and 0.8811 versus the euro, from its early low of
1.2992 and a session's low of 0.8869, respectively. Next key
resistance for the pound is seen around 1.33 against the franc and
0.87 against the euro.
Looking ahead, at 8:30 am ET, Canada wholesale sales for
December are due.
Eurozone preliminary consumer confidence index for February will
be out at 10:00 am ET.
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