Pound Lower On Brexit Uncertainty

The pound came under pressure against its major opponents in the European session on Wednesday, as Brexit concerns intensified after U.K. lawmakers rejected Prime Minister Boris Johnson's proposed timetable to push through the deal before the October 31 deadline.

MPs approved PM's Brexit deal on Tuesday but voted against his plan to get it signed off in three days.

The PM has indicated that the will seek a new election, if the European Union grants a delay until January.

European Council President Donald Tusk tweeted Tuesday that he will urge the other 27 EU nations to approve an extension to the Oct. 31 Brexit deadline. Britain wants a three-month delay until the end of January 2020.

The pound fell back to 1.2843 against the greenback, not far from a 5-day low of 1.2841 hit in the Asian session. The currency is likely to find support around the 1.27 mark, if it weakens further.

Extending early decline, the pound declined to a 2-day low of 1.2703 against the franc. Next near term support for the currency is likely seen around the 1.25 level.

The pound slipped to 0.8660 against the euro, setting a 2-day low. Should the currency slides further, 0.88 is likely seen as its next support level.

The pound declined to a 6-day low of 139.08 against the yen and held steady thereafter. The currency is seen finding support around the 136.5 level.

Looking ahead, Canada wholesale sales and U.S. house price index for August are due in the New York session.

At 10:00 am ET, Eurozone flash consumer sentiment for October is set for release.