Pound Strengthens Despite Brexit Worries

The pound strengthened against its key counterparts in the Asian session on Wednesday, despite the Brexit deal being voted down for the second time by U.K. lawmakers in a crucial vote on Tuesday.

With just two weeks left for the departure, the House of Commons has rejected the so-called divorce deal by 391 to 242 votes.

The defeat came even after May secured significant changes to the contentious Irish border issue from the European Commission on Monday.

The PM confirmed that the Parliament will vote on a new motion regarding whether the UK should leave the EU without a deal on March 29.

She added that all Conservative Party MPs would be granted a free vote on this matter.

Asian stocks fell in cautious trade, with weak machinery orders data from Japan and Brexit-related uncertainty keeping underlying sentiment cautious.

Investors also awaited key industrial output and retail sales data from China due on Thursday to determine immediate market direction.

The pound edged up to 1.3198 against the Swiss franc from Tuesday’s closing value of 1.3171. Next key resistance for the pound is seen around the 1.33 level.

The U.K. currency that ended Tuesday’s deals at 1.3068 against the greenback appreciated to 1.3100. If the pound extends rise, 1.33 is possibly seen as its next resistance level.

The pound rose to 145.84 against the yen, up from yesterday’s closing quote of 145.50. The next possible resistance for the pound is seen around the 148.00 region.

Data from the Bank of Japan showed that Japan producer prices rose 0.2 percent on month in February.

That exceeded expectations for an increase of 0.1 percent following the 0.6 percent decline in January.

The pound advanced to 0.8616 against the euro, compared to 0.8628 hit late New York Tuesday. The pound is poised to find resistance around the 0.84 area.

Looking ahead, Eurozone industrial production for January is due in the European session.

In the New York session, U.S. producer prices for February, durable goods orders and construction spending for January are scheduled for release.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Pound Strengthens Despite Brexit Worries

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