Pound Strengthens On Brexit Optimism
20 September 2019 - 2:26PM
RTTF2
The pound climbed against its major counterparts in the
pre-European session on Friday, as overnight comments from European
Commission President Jean-Claude Juncker raised hopes that a Brexit
deal could be done by the October 31 deadline.
In an interview with Sky News, Juncker said that a deal is
possible and he was doing "everything to get a deal"
No-deal Brexit would have "catastrophic consequences" for at
least one year, he cautioned.
Juncker told that he did not have "an erotic relation" to the
Irish backstop.
If the U.K. come up with alternative arrangements to the
backstop, he was prepared to remove it from the withdrawal
deal.
U.K. Brexit minister Steve Barclay is scheduled to meet EU's
chief negotiator Michel Barnier in Brussels today.
The pound strengthened to 1.2582 against the greenback, its
biggest since July 5. The next possible resistance for the pound is
seen around the 1.27 level.
The pound that closed Thursday's trading at 135.25 against the
yen firmed to more than a 2-month high of 135.75. The pound is
poised to find resistance around the 145.00 level.
Data from the Ministry of Internal Affairs and Communications
showed that Japan consumer prices rose 0.3 percent on year in
August.
That was in line with expectations and slowing from 0.5 percent
in July - moving further away from the Bank of Japan's target range
of 2.0 percent.
The pound appreciated to a 2-day high of 1.2474 against the
franc from Thursday's closing value of 1.2432. If the pound rises
further, it may find resistance around the 1.28 level.
The U.K. currency firmed to 0.8786 against the euro for the
first time since May 22. The pound is seen finding resistance
around the 0.86 mark.
Looking ahead, Canada retail sales for July are due in the
European session.
Eurozone flash consumer sentiment index for September will be
out at 10:00 am ET.
At 11:20 am ET, Federal Reserve Bank of Boston President Eric
Rosengren will give a speech about the credit cycle at an event
hosted by New York University.
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