Pound Eases As Brexit Talks Likely To Miss Mid-Nov. Deadline

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The pound pulled back against its most major counterparts in the European session on Wednesday, after a media report showed that a mid-November deadline to strike a post-Brexit deal between the U.K. and the European Union is likely to be shifted.

Reuters reported that EU leaders in Brussels will not be updated on the talks this week and the Brexit issue is now penciled in for the November 18 meeting.

Negotiators are considering to come up with an agreed text in the middle of next week, unless talks collapse or there is a breakthrough earlier.

The new deadline will be late next week.

The fall remained limited amid a weaker dollar and on vaccine hopes.

The pound retreated to 1.3239 against the greenback, from an early high of 1.3314, which was its strongest level since September 4. The pound is likely to challenge support around the 1.31 area.

After rising to more than a 2-month high of 140.30 at 4:30 am ET, the pound eased off to 139.65 against the yen. The pound is seen testing support around the 138.00 level.

The pound eased slightly to 1.2149 against the franc, from a 2-1/2-month high of 1.2202 seen at 4:30 am ET. The pound may target support around the 1.20 level, if it extends fall.

After a brief fall, the pound climbed to a 6-month high of 0.8861 against the euro. On the upside, 0.86 is likely seen as the next resistance for the pound.

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

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