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
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
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.