Pound Lower As Chancellor Vows Single Market Withdrawal After Brexit
14 August 2017 - 12:23PM
RTTF2
The pound traded lower against its major counterparts in the
European session on Monday, after an article written by the
International Trade Secretary Liam Fox and Chancellor Philip
Hammond showed that the UK will be completely out of the single
market after the Brexit in 2019.
In an article for the Sunday Telegraph, Liam Fox and Hammond
declared that the UK will be "outside the customs union" during the
transitional period immediately after the leaving the EU and that
any "interim period" would be time-limited and "cannot be a back
door to staying in the EU."
"We will leave the customs union and be free to negotiate the
best trade deals around the world as an independent, open, trading
nation," the article showed.
"We are both clear that during this period the UK will be
outside the single market and outside the customs union and will be
a 'third-country' not party to EU treaties."
The pound showed mixed performance in the Asian session. While
the pound rose against the franc and the yen, it held steady
against the greenback and the euro.
The pound edged down to 142.08 against the yen, off its early
4-day high of 142.74. The next possible support for the pound is
seen around the 140.00 area.
Data from the Cabinet Office showed that Japan's gross domestic
product expanded 1.0 percent on quarter in the second three months
of 2017.
That beat forecasts for a gain of 0.6 percent following the
upwardly revised 0.4 percent increase in the three months
prior.
The pound reversed from its early high of 1.3022 versus the
dollar, dropping to 1.2962. The pound is seen finding support
around the 1.27 mark.
The pound declined to 0.9098 against the euro and held steady
thereafter. The pair finished Friday's trading at 0.9085.
Data from Eurostat showed that Eurozone industrial production
declined for the first time in four months in June.
Industrial production decreased 0.6 percent month-on-month in
June, reversing a revised 1.2 percent rise in May. This was the
first decrease since February, when output slid 0.2 percent.
On the flip side, the pound climbed to a 5-day high of 1.2600
against the Swiss franc. The pound is likely to find resistance
around the 1.27 region.
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