Pound Advances On France Lifting U.K. Travel Ban, Brexit Hopes
The pound was higher against its major counterparts in the European session on Wednesday, as France lifted the travel ban on the U.K., allowing travel in limited circumstances, as the border closure caused chaos during the holiday season.
Freight and some passenger services had resumed Tuesday evening, whereas land, air and sea services will be operating from today.
The European Commission on Tuesday urged EU nations to ease travel bans imposed on Britain in order to ensure essential travel and avoid supply chain disruptions.
European Union chief negotiator Michel Barnier said on Tuesday that talks were at a “crucial point” despite a deadlock over fisheries and level playing field.
“We are really in a crucial moment. We are giving it a final push,” he added.
While the bloc demanded a cut in the value of its fish catch in the U.K. waters by around 25 percent, the U.K. wanted a 30-35 percent reduction.
Both sides are racing to reach a post-Brexit trade deal before the end of the year, when the transition period expires.
The pound appreciated against the euro and the franc, touching 5-day highs of 0.9065 and 1.1955, respectively. This followed early lows of 0.9104 against the euro and 1.1865 against the franc of the pound. Next key resistance for the pound is seen around 0.88 against the euro and 1.22 against the franc.
The pound edged up to 1.3444 against the greenback and 139.00 against the yen, after falling to 1.3347 and 138.36, respectively in early deals. The pound is likely to challenge resistance around 1.36 against the greenback and 141.00 against the yen.
Looking ahead, Canada GDP data for October, U.S. durable goods orders, new home sales and personal income and spending data, all for November, FHFA’s house price index for October, University of Michigan’s final consumer sentiment index for December and weekly jobless claims for the week ended December 19 will be featured in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com