Pound Slides Against Majors
18 May 2018 - 5:41PM
RTTF2
The pound weakened against its major rivals in European deals on
Friday, as sentiment faded on caution about trade negotiations
between the U.S. and China in Washington.
Trump said Thursday that he is not sure over whether talks would
help avert a trade war with China.
Italy's anti-establishment Five Star Movement and the far-right
League reached an agreement to form a coalition government that
could assume power as early as next week.
The common programme is aimed at "limited deficit spending" to
boost GDP growth and a review of the EU's fiscal rules.
The pound traded mixed against its major counterparts in the
Asian session. While the currency declined against the euro and the
franc, it held steady against the greenback. Against the yen, it
dropped.
The pound edged down to 1.3482 against the greenback, after
having risen to 1.3528 at 3:00 am ET. On the downside, 1.32 is
likely seen as the next support for the pound.
Following more than a 2-week high of 150.01 hit at 10:45 pm ET,
the pound retreated to 149.54 against the yen. If the pound
continues its fall, 147.00 is possibly seen as its next support
level.
Data from Destatis showed that Germany's consumer price
inflation accelerated unexpectedly in April, though marginally.
Producer price inflation rose to 2.0 percent in April from 1.9
percent in March. Meanwhile, the rate was forecast to slow to 1.8
percent.
Data from the Ministry of Internal Affairs and Communications
showed that Japan consumer prices rose 0.6 percent on year in
April.
That was shy of expectations for a gain of 0.7 percent and was
down sharply from 1.1 percent in March.
The pound hit a 2-day low of 1.3474 againt the franc, from a
high of 1.3539 hit at 6:15 pm ET. The next possible support for the
pound is seen around the 1.33 level.
The pound dropped to 0.8754 againt the euro, reversing from a
high of 0.8723 hit at 5:00 pm ET. Next key support for the pound is
likely seen around the 0.885 level.
Looking ahead, Canada retail sales for March and consumer prices
for April are due in the New York session.
At 9:15 am ET, Fed Governor Lael Brainard will deliver a speech
titled "Community Reinvestment Act Modernization" at the
Association for Neighborhood and Housing Development's Community
Development Conference in New York.
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