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Pound resilient as Brexit plot thickens

Pound resilient as Brexit plot thickens

NEW YORK, Sept 11: The pound strengthened against boththe dollar and the euro on Tuesday as investors took heart from legislationblocking a no-deal Brexit, reports AFP. Sterling also received a boost from stronger British economic growth thanmarkets had been expecting and statistics showing unemployment at a 45-yearlow. This in turn fueled expectations that the Bank of England will refrainfrom cutting rates, something which could undermine the already embattledcurrency further still. "With the risk of an imminent no-deal Brexit declining, the market is nowpricing less aggressive easing from the Bank of England," said Petr Krpata,strategist at ING, saying this had allowed sterling to outperform its peers.European stock markets, meanwhile, drifted sideways, awaiting a keyEuropean Central Bank meeting this week, while US markets ended a choppysession little changed. Apple got a boost as it unveiled new iPhones, including a lower-pricedoffering, and set launch dates for its original video offering, Apple TV+,and its game subscription service.The British parliament is now suspended, which could lead to a period ofrelative Brexit calm, analysts said. "With no more parliamentary sessions due for five weeks, the focus nowturns to the prospects of a new deal being negotiated between the UK and theEU," said XTB analyst David Cheetham. British Prime Minister Boris Johnson failed again late on Monday to getMPs to back a snap election.But City Index analyst Fiona Cincotta cautioned that the pound remainsfragile. "With no resolution to Brexit or any sense of control returning to UKpolitics, the pound could struggle to keep its head above water in the comingsessions," she said. Europe's main stock markets showed mild gains at the close as investorsmulled speculation that the ECB could deliver economy-boosting measures on Thursday." Traders are playing the wait-and-see game in relation to the ECBmeeting," noted CMC Markets analyst David Madden."To a certain extent, some form of monetary easing from the ECB has beenpriced in." Pound/dollar: UP at $1.2357 from $1.2346 at 2100 GMTEuro/pound: DOWN at 89.37 pence from 89.49 penceEuro/dollar: DOWN at $1.1042 from $1.1048Dollar/yen: UP at 107.53 yen from 07.24 yenNew York - Dow: DOWN 0.3 percent at 26,909.43 (close)New York - S&P 500: UP less than 0.1 percent at 2,979.39 (close)New York - Nasdaq: DOWN less than 0.1 percent at 8,084.16 (close)London - FTSE 100: UP 0.4 percent at 7,267.95 points (close)Frankfurt - DAX 30: UP 0.4 percent at 12,268.71 (close)Paris - CAC 40: UP 0.1 percent at 5,593.21 (close)EURO STOXX 50: UP 0.1 percent 3,498.99 (close)Tokyo - Nikkei 225: UP 0.4 percent at 21,392.10 (close)Hong Kong - Hang Seng: FLAT at 26,683.68 (close)Shanghai - Composite: DOWN 0.1 percent at 3,021.20 (close)Brent North Sea crude: DOWN 0.3% at $62.38 per barrelWest Texas Intermediate: DOWN 0.8% at $57.40 per barrelBSS/AFP/HR/1015.

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