Pound Falls As U.K. Govt. Plans To Trigger Article 50 On March 29
March 20 2017 - 6:09AM
RTTF2
The pound dropped against its major counterparts in early New
York deals on Monday, erasing early gains, after the U.K.
government announced plans to invoke Article 50 on March 29,
allowing the nation to kick start formal Brexit negotiations with
the other EU members on terms of its exit.
Britain's EU ambassador, Tim Barrow, informed the office of
European Council president Donald Tusk that the U.K. would submit
formal letter to Brussels on the same day.
The Prime Minister will give a statement to MPs in the House of
Commons next week, after pulling the Brexit trigger.
The initiation of Article 50 will enable the U.K. to work on
deal with the EU, which will set the terms of its departure and
future relations after leaving the bloc.
The pound was trading in a positive territory early in the
European session, on expectations of UK inflation hitting 2.1
percent when the latest data is unveiled on Tuesday.
The latest survey from property tracking website Rightmove
showed that the average asking prices for a house in the United
Kingdom increased further in March.
House prices in England and Wales climbed 1.3 percent
month-over-month in March, following a 2.0 percent rise in
February.
The pound held steady against its major rivals in the Asian
session, with the exception of the euro.
The pound eased to 1.2367 against the greenback and 1.2341
against the franc, from its early near 3-week high of 1.2435 and
near a 2-week high of 1.2397, respectively. The next possible
support for the pound is seen around 1.20 against the greenback and
1.18 against the franc.
The pound retreated to 139.52 against the yen and 0.8689 against
the euro, from its early high of 140.12 and an 11-day high of
0.8659, respectively. If the pound extends slide, it may find
support around 0.90 against the euro and 137.00 against the
yen.
Looking ahead, German Bundesbank President Jens Weidmann is
expected to speak in Loerrach at 12:45 pm ET.
Subsequently, Federal Reserve Bank of Chicago President Charles
Evans is expected to speak about current economic conditions and
monetary policy at the National Association for Business Economics
luncheon, in New York at 1:10 pm ET.
At 2:20 pm ET, Bank of England Chief Economist Andy Haldane is
scheduled to speak at the London School of Economics Public
Productivity Lecture.
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