The pound declined against its major counterparts in the European session on Tuesday, after the Brexit Party leader Nigel Farage rejected Conservative calls to stand down candidates in Labour-held seats in the general election.
After confirming that his candidates would not fight in Tory held seats, Farage said the he would not give up any more seats in Labour areas to deliver Brexit.
The party is planning to stand candidates in about 300 seats held by Labour and pro-remain parties to get MPs into Parliament.
Farage urged the Conservatives to stand aside in some areas to give his party a chance of securing them.
He insisted that he would give no more ground to the Tories and would fight every Labour-held seat in the country.
Data from the Office for National Statistics showed that the UK labor market remained weak in the third quarter as employment and vacancies declined notably ahead of general election.
The employment rate fell by 0.1 percentage point to 76 percent in the third quarter. Employment declined by 58,000 to 32.75 million in the third quarter.
The pound showed mixed trading against its major counterparts in the Asian session. While it rose against the yen and the franc, it was steady against the euro and the greenback.
The pound declined to 1.2815 against the greenback, from a high of 1.2867 it touched at 7:15 pm ET. The pound may challenge support around the 1.27 level.
Following a 6-day high of 140.59 seen at 1:15 am ET, the pound reversed direction against the yen with the pair trading at 140.13. The currency is likely to locate support around the 137.00 level.
Data from the Bank of Japan showed that Japan’s money supply increased at a faster pace in October.
The monetary aggregate M2 expanded 2.5 percent year-on-year, following August’s 2.4 percent increase. This was the fastest growth in five months. The rate was forecast to remain unchanged at 2.4 percent.
The pound edged lower to 1.2743 against the franc, after reaching as high as 1.2799 at 1:45 am ET. On the downside, 1.23 is possibly seen as the next support level for the pound.
The pound that closed Monday’s deals at 0.8582 against the euro depreciated to 0.8606. The pound is likely to test support around the 0.88 level, if it falls again.
The material has been provided by InstaForex Company – www.instaforex.com