Pound Retreats As U.K. PM To Invoke Article 50 On Wednesday

The pound trimmed its early gains against its major counterparts in the European session on Monday, after the news that the U.K. Prime Minister Theresa May will trigger Article 50 on Wednesday, with an aim to begin the Brexit negotiations with the European Union soon after the process.

A spokesman for the PM said that the U.K. has informed European Council president Donald Tusk's office of May's plan to formally trigger Britain's exit from the EU.

The Prime Minister will give a statement to MPs in the House of Commons next week, after formally pulling the Brexit trigger.

The pound eased to 1.2367 against the greenback and 1.2341 against the franc, from its early near 3-week high of 1.2435 and near a 2-week high of 1.2397, respectively.

The pound retreated to 139.58 against the yen and 0.8688 against the euro, from its early high of 140.12 and an 11-day high of 0.8659, respectively.

If the pound extends slide, it may find support around 1.20 against the greenback, 1.18 against the franc, 0.90 against the euro and 137.00 against the yen.