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Pound Strengthens After May Says Voting Down Brexit Deal Risks 'No Brexit'

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U.K. Prime Minister Theresa May's warning before the Parliamentary vote that rejecting the Brexit deal risks "no Brexit scenario" send the pound higher against its major counterparts in the European session on Monday.

Speaking to factory workers in Stoke-on-Trent, May claimed that Parliament is more likely to prevent Brexit rather than permitting it to leave without a deal.

May's speech comes ahead of Parliamentary vote on the Brexit deal tomorrow, which is expected is face defeat in the Commons.

Should lawmakers voted down the deal, the most likely outcome would be a "paralysis in parliament that risks there being no Brexit," May told.

"The only deal on the table is the one MPs will vote on tomorrow night," May said. "You can take no deal off the table by voting for that deal. If no deal is as bad as you believe it is, it will be the height of recklessness to do anything else."

The currency was lower against its most major counterparts in the Asian session, as Asian shares fell after weak China data and investors awaited the Parliamentary vote on the Brexit due tomorrow.

The pound advanced 0.3 percent to 0.8905 against the euro, its largest level since December 7, 2018. The pair was valued at 0.8929 when it ended deals on Friday. Next key resistance for the pound is seen around the 0.88 level.

Data from the Eurostat showed that Eurozone's industrial production decreased at a faster-than-expected pace in November.

Industrial production decreased a seasonally adjusted 1.7 percent from October, when it edged up 0.1 percent, revised from 0.2 percent. Economists had expected a 1.5 percent slump.

The pound appreciated to near a 2-month high of 1.2880 against the greenback, recording a 0.5 percent gain from a low of 1.2819 touched at 3:45 am ET. At last week's close, the pair was worth 1.2835. The pound is seen finding resistance around the 1.30 level.

The U.K. currency bounced off to 139.23 against the yen, from a low of 138.60 hit at 2:30 am ET. The currency is thus not far from near a 2-week peak of 139.57 set at the beginning of today's trading. The pound is poised to find resistance around the 142.00 mark.

The pound recovered to 1.2642 against the Swiss franc, after falling to 1.2593 at 3:45 am ET. The currency is thus closer to pierce near a 6-week high of 1.2659 seen at 5:00 pm ET. The pair was quoted at 1.2629 at last week's close. Further uptrend may take the pound to a resistance around the 1.28 region.

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