Pound Weakens On Falling European Shares
The pound fell against its major trading partners in the
European session on Friday, as concerns over retail trading frenzy
in short positions dampened risk sentiment.
Markets digest the latest Reddit's retail-trade frenzy, which
triggered outsized moves in GameStop, AMC Entertainment and other
previously beaten-down stocks.
The surge in speculative trading has prompted several e-brokers
to take steps to restrict the buying of shares on Thursday.
Robinhood and other online broker platforms eased restrictions
on select share trading, re-igniting volatility of shares.
Continued concerns over tight liquidity in China, rising
Covid-19 cases and the delays to vaccine rollouts also rattled
The pound declined to 0.8871 against the euro, after rising to a
2-day high of 0.8825 at 9:45 pm ET. If the pound falls further, it
is likely to test support around the 0.90 region.
Reversing from a high of 1.3730 seen at 5:15 pm ET, the pound
edged down to 1.3657 against the greenback. The pound is poised to
challenge support around the 1.34 mark.
After a a 2-day gain to 1.2202 at 9:45 pm ET, the pound turned
lower against the franc and was worth 1.2149. The currency may
locate support around the 1.19 mark.
In contrast, the pound jumped to 143.74 against the yen, its
highest since February 2020. The pound is seen finding resistance
around the 145.00 mark.
Looking ahead, Canada GDP data for November and industrial
product price index for December, as well as University of
Michigan's final consumer sentiment index for January and U.S.
personal income and spending data and pending home sales for
December are due out in the New York session.