Pound Climbs As U.K., EU Agree On Brexit Transition Deal
19 March 2018 - 7:29PM
RTTF2
The pound advanced against its major counterparts in the
European session on Monday, after reports that the European Union
reached a post-Brexit transitional deal, ahead of the EU summit due
this week.
The transitional deal enables the U.K. to continue its
membership of the Single Market and customs union until the end of
2020.
The EU announcement came ahead of the meeting between U.K. lead
Brexit negotiator David Davis and the EU's negotiator Michel
Barnier in Brussels later in the day.
According to the deal, Britain will continue to accept EU rules
until the end of 2020, and remain under the jurisdiction of the
European Court of Justice.
Data from property website Rightmove showed that house prices in
London continued to decrease in March.
Home prices dropped 0.6 percent annually in March to GBP
631,651. Nonetheless, prices climbed 0.6 percent from February.
The pound showed mixed trading against its major rivals in the
Asian session. While it held steady against the franc and the euro,
it dropped against the yen and the greenback.
The pound climbed to a 3-week high of 1.4045 against the
greenback, from a low of 1.3913 hit at 1:00 am ET. The next
possible resistance for the pound is seen around the 1.43
level.
The pound strengthened to 1.3383 against the Swiss franc, its
strongest since January 25. On the upside, 1.35 is seen as the next
resistance level for the pound.
The pound advanced to near a 6-week high of 0.8754 versus the
euro, after having fallen to 0.8817 at 5:00 pm ET. The pound is
seen finding resistance around the 0.86 level.
Data from Eurostat showed that the Eurozone trade surplus
declined to a three-month low in January as exports declined amid
an increase in imports.
The trade surplus came in at seasonally adjusted EUR 19.9
billion versus a EUR 23.2 billion surplus in December. This was the
lowest since October 2017.
The pound spiked up to a 5-day high of 149.05 against the yen,
following a 10-day low of 147.05 hit at 1:00 am ET. If the pound
rises further, 151.00 is likely seen as its next resistance
level.
Preliminary figures from the Ministry of Finance showed that
Japan's exports and imports grew more-than-expected in
February.
The value of exports climbed 1.8 percent year-over-year in
February, faster than the 1.4 percent rise economists had
forecast.
Looking ahead, at 9:40 am ET, Atlanta Fed President Raphael
Bostic speaks about the future of community development at the
National Interagency Community Reinvestment Conference in
Miami.
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