Pound Extends Slide Amid Scottish Referendum Jittery

The British pound continued to be weak against the other major currencies in the European session on Monday amid fears that the Scottish government may call another referendum.

According to a report from the Times of London, U.K. Prime Minister Theresa May's team is preparing for Scotland to call a second independence referendum to coincide with the triggering of Article 50 in March.

Investors also preferred to stay on the sidelines as they await more details on U.S. President Donald trump's fiscal stimulus plans. Trump is set to make his first address to a joint session of Congress on Tuesday.

In the Asian trading today, the pound had fallen against its major rivals.

In the European trading, the pound fell to a 1-week low of 0.8534 against the euro, nearly a 2-week low of 1.2384 against the U.S. dollar and a 6-day low of 1.2484 against the Swiss franc, from early highs of 0.8461, 1.2474 and 1.2557, respectively. If the pound extends its downtrend, it is likely to find support around 0.86 against the euro, 1.22 against the greenback and 1.23 against the franc.

Against the yen, the pound slipped to 139.08 from an early high of 139.96. This may be compared to an early near 3-week low of 139.01. The pound is likely to find support around the 137.00 region.

Looking ahead, at 7:30 am ET, Swiss National Bank Governing Board Member Fritz Zurbrugg will deliver a speech titled "Cash - tried and tested, and with a future" at the World Banknote Summit, in Basel.

In the New York session, U.S. durable goods orders and pending home sales data, both for January, are slated for release.

At 11:00 am ET, Federal Reserve Bank of Dallas President Robert Kaplan is expected to speak at the University of Oklahoma's Distinguished Speaker Series.

For comments and feedback contact: editorial@rttnews.com

Forex News

Follow RTT