Pound Strengthens As Report Says EU Parliament Softens Brexit Stance

The pound climbed against its major counterparts in European deals on Tuesday, following a media report that the European Parliament is working on a plan that could retain "privileged" access to the single market for the U.K.

The 60-page document will have a "very detailed" explanation of the future relationship that the Parliament wants to keep with Britain after Brexit, the Business Insider reported.

The European Parliament has outlined its willingness for an "association agreement" to establish enhanced relationship with the U.K.

The so called 'association agreement' is a form of arrangement that could grant U.K. "privileged" single market access and membership of EU agencies.

The document marks a break from the stance of the EU's chief Brexit negotiator Michel Barnier, who insisted that no special deals would be on the table.

Meanwhile, European shares are mixed as investors waited for the minutes of the latest Federal Reserve meeting for clues on the U.S. rate outlook.

British manufacturers expect output growth to ease over the next three months, according to the Industrial Trends Survey from the Confederation of British Industry.

The total order book balance came in at 10 percent in February, above its negative long-run average of -14 percent. The export order book balance also stood at 10 percent.

The currency was trading mixed in the Asian session. While it rose against the yen and the franc, it held steady against the euro. Against the greenback, it declined.

The pound advanced to 1.4015 against the greenback, off its early 6-day low of 1.3932. The pound is poised to challenge resistance around the 1.43 level.

The pound climbed to a weekly high of 150.20 versus the yen, from a low of 149.09 hit at 2:30 am ET. The next possible resistance for the pound is seen around the 153.00 mark.

The pound strengthened to 11-day highs of 1.3098 against the Swiss franc and 0.8811 versus the euro, from its early low of 1.2992 and a session's low of 0.8869, respectively. Next key resistance for the pound is seen around 1.33 against the franc and 0.87 against the euro.

Looking ahead, at 8:30 am ET, Canada wholesale sales for December are due.

Eurozone preliminary consumer confidence index for February will be out at 10:00 am ET.