Pound Firms Against Majors
April 23 2019 - 4:02AM
RTTF2
The pound strengthened against its major counterparts in the
European session on Tuesday, as investors awaited UK cross-party
talks resuming today to resolve Brexit crisis.
The Prime Minister's deputy, David Lidington, and the Brexit
secretary, Steve Barclay, will lead talks with Labour shadow
ministers, including shadow Brexit secretary Sir Keir Starmer this
afternoon.
A number of working groups involving individual ministers and
their Labour counterparts have been scheduled for later in the
week.
Meanwhile, the UK Parliament reconvenes today after an 11-day
Easter break.
The UK lawmakers' return come amid further challenge to
leadership for PM Theresa May.
Expectations that the U.K. PM will face another no-confidence
motion dragged down the pound on Monday.
The currency traded mixed against its major counterparts in the
Asian session. While it held steady against the franc and the
greenback, it rose against the euro. Against the yen, it
declined.
The pound appreciated to 1.3266 against the franc, its strongest
since March 19. The pound is seen finding resistance around the
1.34 level.
The pound firmed to a 5-day high of 1.3019 against the
greenback, from a session's low of 1.2975 hit at 8:15 pm ET. Next
likely resistance for the pound is seen around the 1.32 level.
After declining to near a 2-week low of 144.98 against the yen
at 9:00 pm ET, the pound reversed direction and advanced to a 5-day
high of 145.63. On the upside, 147.00 is possibly seen as the next
resistance level for the pound.
The pound climbed to a 4-day high of 0.8642 against the euro,
from a low of 0.8674 touched at 6:00 pm ET. The pound is likely to
find resistance around the 0.84 level, if it rises further.
Looking ahead, Canada wholesale sales for February, U.S. house
price index for the same month, new home sales for March and
Eurozone flash consumer sentiment index for April are due in the
New York session.
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