Pound Strengthens On Brexit Hopes
October 16 2020 - 02:27AM
RTTF2
The pound was higher against its major counterparts in the
European session on Friday, as investors awaited Prime Minister
Boris Johnson's response to the European Union's call for making
concessions to secure a future trade agreement.
EU leaders on Thursday demanded the UK to offer further
concessions to reach a deal on trade, saying that progress made on
key issues was still "not sufficient for an agreement to be
reached".
U.K. chief Brexit negotiator David Frost said he was "surprised"
and "disappointed" by the European Union's position during
negotiations in Brussels.
EU chief negotiator Michel Barnier told reporters that there
were "prospects" of a deal but he could not say that "we'll
necessarily get a deal."
The PM is expected to announce his decision today, regarding
whether the U.K. will abandon or continue talks.
Talks are still stuck on issues related to fisheries, issues of
governance and the level playing field.
The pound appreciated to 1.2945 against the dollar and 1.1849
against the franc, after having fallen to 2-day lows of 1.2883 and
1.1785, respectively in prior deals. Next key resistance for the
pound is likely seen around 1.31 against the dollar and 1.22
against the franc.
The U.K. was trading at 136.28 against the yen and 0.9044
against the euro, up from its early 2-week low of 135.62 and a
2-day low of 0.9083, respectively. The pound is seen locating
resistance around 138.00 against the yen and 0.88 versus the
euro.
Looking ahead, U.S. business inventories data for August, retail
sales and industrial production for September and University of
Michigan's preliminary consumer sentiment index for October are set
for release in the New York session.
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