Pound Extends Decline Amid U.K. PM Theresa May's Brexit Speech

The pound continued to be lower against its major counterparts in early New York deals on Friday, following remarks by the U.K. Prime Minister Theresa May hinting at the departure from the European Union by March 2019.

"We are moving through a new and critical period in the history of the United Kingdom's relationship with the European Union. The British people have decided to leave the EU and be a global free-trading nation able to chart our own way in the world," May said at a speech in Florence.

The UK membership in the European Union will end on March 29, 2019, she told. Neither the UK nor the EU could implement a new smooth relationship at that point.

May said that it is impossible to have all the advantages of the single market with none of the disadvantages. Hence, a "creative" economic partnership was needed, she told.

Data from the Confederation of British Industry showed that UK manufacturers' order books softened in September but both total orders and export orders remained strong.

According to the latest monthly Industrial Trends Survey, a net balance of 7 percent of manufacturers said order books were above normal but it was below August's 13 percent.

The pound has been trading in a negative territory in the European session.

The pound weakened to 1.3527 against the greenback, after having advanced to a 2-day high of 1.3596 at 2:00 am ET. The pound is likely to find support around the 1.34 area.

The pound reversed from an early high of 152.79 against the Japanese yen, falling to a 2-day low of 151.17.Continuation of the pound's downtrend may see it challenging support around the 146.00 area.

The pound slipped to 1.3074 against the Swiss franc, from a high of 1.3185 hit at 5:30 pm ET. The currency is poised to target 1.29 as the next support level.

The pound dipped to a 2-day low of 0.8869 against the euro, following an uptick to 0.8787 at 5:00 pm ET. The next possible support for the pound is seen around the 0.90 mark.

Flash data from IHS Markit showed that the eurozone private sector ended the third quarter on a strong note in September, with growth in activity picking up to its highest since May.

The headline composite output index rose unexpectedly to 56.7 in September from 55.7 in August. The expected score was 55.6.