Pound Rises As Brexit Talks Kick Off

The British pound strengthened against the other major currencies in the European session on Monday, as French president Emmanuel Macron's party scored an overwhelming victory in the second round of parliamentary elections and investors awaited the start of formal Brexit talks between the U.K. and the European Union.

U.K. Brexit Secretary David Davis, along with others will begin talks with the Chief EU negotiator Michael Barnier in Brussels to discuss Britain's exit from the European Union.

In the Asian trading today, the pound held steady against its major rivals.

In the European trading, the pound rose to a 5-day high of 1.2814 against the U.S. dollar, from an early low of 1.2757. The pound may test resistance near the 1.30 region.

Against the yen and the euro, the pound advanced to 142.34 and 0.8734 from early 4-day low of 141.33 and 0.8780, respectively. If the pound extends its uptrend, it is likely to find resistance around 144.00 against the yen and 0.85 against the euro.

Against the Swiss franc, the pound climbed to a 4-day high of 1.2468 from an early 4-day low of 1.2409. On the upside, 1.26 is seen as the next resistance level for the pound.

Looking ahead, at 8:00 am ET, Federal Reserve Bank of New York President William Dudley is expected to speak at the North Country Chamber of Commerce, in Plattsburgh.

At 11:00 am ET, German Bundesbank President Jens Weidmann is expected to speak at the Colloquium in memoriam Prof Dr Hans Tietmeyer, in Frankfurt.