Pound Slides As Hopes For Cross-party Deal Recedes After Labour Backlash
May 05 2019 - 11:32PM
RTTF2
The pound depreciated against its major counterparts in the
Asian session on Monday, as hopes for a breakthrough in cross-party
talks faded after U.K. Labour party blamed Prime Minister Theresa
May for leaking details of the key terms of a possible agreement to
the Press.
Speaking to BBC One's Andrew Marr show, Shadow Chancellor John
McDonnell accused the Prime Minister of acting in "bad faith" by
blowing the confidentiality of the talks to enhance her
position.
"She's jeopardised the negotiations for her own personal
protection," he said, adding: "We're dealing with a very unstable
government.
The talks were centered on plans for a comprehensive, but
temporary, customs arrangement with the EU that would last until
the next general election.
Following the standoff, the PM pleaded with Jeremy Corbyn to
help deliver Brexit in an article for the Mail on Sunday.
"Put our differences aside for a moment. Let's do a deal," May
wrote.
The pound declined to 0.8534 against the euro, from a
1-1/2-month high of 0.8488 hit at 5:15 pm ET. The pound is seen
finding support around the 0.86 level.
Having climbed to 1.3171 against the greenback at 6:45 pm ET,
the pound reversed direction and edged down to 1.3112. The pound is
poised to challenge support around the 1.30 area.
Reversing from a high of 145.94 hit at 7:00 pm ET, the pound
dropped to 144.99 against the yen. Next key support for the pound
is seen around the 142.5 region.
The pound slipped to 1.3319 against the franc, after rising to
1.3384 at 5:45 pm ET. On the downside, 1.31 is likely seen as the
next possible support for the pound.
Looking ahead, PMIs from major European economies, Eurozone
Sentix investor sentiment index for May and retail sales for March
are due in the European session.
Federal Reserve Bank of New York President John Williams will
speak at the Annual Bronx Bankers Breakfast in New York at 10:00 am
ET.
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