Pound Slides As May Cautions On New Brexit Vote
March 18 2019 - 4:36AM
RTTF2
The pound fell against its major counterparts in the European
session on Monday, after U.K. Prime Minister Theresa May cautioned
that a planned Brexit vote due this week could be delayed, if she
is unable to secure backing from lawmakers to get the deal approved
through the House of Commons.
In a last-ditch effort to convince MPs, May wrote in The Sunday
Telegraph that should her deal is approved by Parliament this week,
she could seek to postpone Brexit until June 30 to the EU at a
summit in Brussels on Thursday.
The withdrawal deal "is the only way through the current
impasse."
A successful vote would help seek "a short technical extension
to pass the necessary legislation," May said.
"The alternative if Parliament cannot agree the deal by that
time is much worse."
If Parliament rejects the Brexit deal, Brexit would be delayed
too long requiring the U.K. to participate in the European
Parliament elections in May.
A defeat would contemplate "we will not leave the EU for many
months, if ever," May wrote.
The currency has been trading lower against its major
counterparts in the Asian session, with the exception of the
yen.
The pound dropped to a 4-day low of 147.41 against the yen,
following a 4-day high 148.39 hit at 10:45 pm ET. The pound is seen
finding support around the 145.00 level.
Final data from the Ministry of Economy, Trade and Industry
showed that Japan's industrial production in January declined less
than estimated earlier.
Industrial production fell a seasonally adjusted 3.4 percent
month-on-month in January, following a 3.7 percent decline
estimated earlier.
Having advanced to a 4-day high 0.8510 against the euro at 7:00
pm ET, the pound reversed direction and weakened to a 5-day low of
0.8580. The next key support for the pound is seen around the 0.88
level.
The pound edged down to 1.3234 against the franc, after rising
to 1.3332 at 7:30 pm ET. The pound is poised to find support around
the 1.31 area.
The U.K. currency reversed from an early session's high of
1.3300 against the greenback, falling to 1.3228. On the downside,
1.31 is likely seen as the next support for the pound.
Looking ahead,the U.S. NAHB housing market index for March is
scheduled for release in the New York session.
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