Pound Falls On U.K. Political Tensions
April 22 2019 - 7:12AM
RTTF2
The pound came under pressure against its major counterparts in
the New York session on Monday, amid media reports that U.K. Prime
Minister Theresa May is likely to face no-confidence challenge over
her handling of Brexit.
The Conservatives have called for an extraordinary general
meeting with an aim to overthrow May by the end of June, media
reports said.
The meeting and another no-confidence vote could be held within
28 days.
As per party rules, lawmakers cannot challenge May's leadership
again until a year has passed, but lawmaker Graham Brady may demand
her to quit, or opt to change the relevant party rules.
The currency has been trading lower against its major
counterparts in the European session.
The pound declined to a 5-day low of 0.8670 against the euro,
from a high of 0.8643 hit at 5:00 pm ET. The pound is seen finding
support around the 0.88 level.
The pound hovered at 145.24 against the yen, a 10-day low. This
follows a high of 145.51 touched at 11:00 pm ET. Next likely
support for the pound is seen around the 142.00 level.
The U.K. currency reversed from an early high of 1.3000 against
the greenback, falling to 1.2978. The pound is poised to find
support around the 1.28 level.
Data from the National Association of Realtors showed a
significant pullback in U.S. existing home sales in the month of
March.
NAR said existing home sales plunged by 4.9 percent to an annual
rate of 5.21 million in March after soaring by 11.2 percent to a
revised rate of 5.48 million in February.
On the flip side, the pound recovered to 1.3189 against the
franc, from a 4-day low of 1.3161 touched at 5:00 pm ET. If the
pound rises further, 1.325 is seen as its next resistance
level.
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