Pound Climbs After U.K, EU Agree On Draft Deal For Future Relationship
November 22 2018 - 2:47AM
RTTF2
The pound drifted higher against its major opponents in the
European session on Thursday, after news that the U.K. and the
European Union agreed on a draft agreement on their future
relationship ahead of the EU summit on Sunday.
The draft declaration envisages to have "a trading relationship
on goods that is as close as possible" following Brexit.
The declaration stated that the UK and EU "agree to develop an
ambitious, wide-ranging and balanced economic partnership."
The draft statement outlines the structure for the future
U.K.-E.U. relationship, which will be fully negotiated after the
Britain formally leaves on March 29, 2019.
"I have just sent to EU27 a draft political declaration on the
future relationship between EU and UK," European Council President
Donald Tusk said in a tweet. "The Commission president has informed
me that it has been agreed at negotiators' level and agreed in
principle at political level, subject to the endorsement of the
leaders."
The currency was also buoyed by a falling dollar, which weakened
for a second straight session amid the Thanksgiving holiday in the
U.S.
The currency traded mixed against its major opponents in the
Asian session. While it rose against the greenback and the yen, it
held steady against the euro and the franc.
The pound climbed to weekly highs of 1.2927 versus the dollar
and 145.94 against the yen, off its early lows of 1.2768 and
144.26, respectively. If the pound rises further, 1.32 and 147.00
are likely seen as its next resistance levels versus the dollar and
the yen.
The U.K. currency appreciated to a 6-day high of 0.8841 against
the euro and a 3-day high of 1.2834 against the Swiss franc,
reversing from its early low of 0.8923 and near a 2-month low of
1.2691, respectively. The next possible resistance for the pound is
seen around 0.87 against the euro and 1.31 against the Swiss
franc.
Looking ahead, the Bank of Canada Senior Deputy Governor Carolyn
Wilkins will participate in a panel discussion titled "2-Balancing
act: How governments can manage systemic risks and maintain healthy
housing markets" at the Canada Mortgage and Housing Corporation in
Ottawa at 9:45 am ET.
At 10:00 am ET, Eurozone flash consumer sentiment index for
November will be out.
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