Pound Extends Decline Amid U.K. PM Theresa May's Brexit Speech
September 22 2017 - 6:48AM
RTTF2
The pound continued to be lower against its major counterparts
in early New York deals on Friday, following remarks by the U.K.
Prime Minister Theresa May hinting at the departure from the
European Union by March 2019.
"We are moving through a new and critical period in the history
of the United Kingdom's relationship with the European Union. The
British people have decided to leave the EU and be a global
free-trading nation able to chart our own way in the world," May
said at a speech in Florence.
The UK membership in the European Union will end on March 29,
2019, she told. Neither the UK nor the EU could implement a new
smooth relationship at that point.
May said that it is impossible to have all the advantages of the
single market with none of the disadvantages. Hence, a "creative"
economic partnership was needed, she told.
Data from the Confederation of British Industry showed that UK
manufacturers' order books softened in September but both total
orders and export orders remained strong.
According to the latest monthly Industrial Trends Survey, a net
balance of 7 percent of manufacturers said order books were above
normal but it was below August's 13 percent.
The pound has been trading in a negative territory in the
European session.
The pound weakened to 1.3527 against the greenback, after having
advanced to a 2-day high of 1.3596 at 2:00 am ET. The pound is
likely to find support around the 1.34 area.
The pound reversed from an early high of 152.79 against the
Japanese yen, falling to a 2-day low of 151.17.Continuation of the
pound's downtrend may see it challenging support around the 146.00
area.
The pound slipped to 1.3074 against the Swiss franc, from a high
of 1.3185 hit at 5:30 pm ET. The currency is poised to target 1.29
as the next support level.
The pound dipped to a 2-day low of 0.8869 against the euro,
following an uptick to 0.8787 at 5:00 pm ET. The next possible
support for the pound is seen around the 0.90 mark.
Flash data from IHS Markit showed that the eurozone private
sector ended the third quarter on a strong note in September, with
growth in activity picking up to its highest since May.
The headline composite output index rose unexpectedly to 56.7 in
September from 55.7 in August. The expected score was 55.6.
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Aug 2024 to Sep 2024
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Sep 2023 to Sep 2024