Pound Falls As PM May Set To Unveil Plan B

The pound fell against its major counterparts in the early European session on Monday, as U.K. Prime Minister Theresa May is set to deliver the 'plan B'to the UK parliament later today, following a major setback on the EU withdrawal agreement in Parliament last week.

The PM will address the House of Commons around 15:30 GMT, when she will outline her plans to proceed with the Brexit withdrawal agreement.

The MPs were advised to not frustrate the Brexit process by laying out amendments and motions that could delay or lead to a no-Brexit.

The government will table a "neutral motion" and deliver a written and an oral statement to the MPS about her next plans.

European shares are trading mixed as the latest GDP data from China confirmed a slowdown in the world's second largest economy and the Bloomberg reported that the U.S. and China are making little progress on the key issue of intellectual property protection.

The currency traded mixed against its major counterparts in the Asian session. While it held steady against the greenback and the franc, it fell against the euro and the yen.

The pound slipped to 4-day lows of 1.2781 against the franc and 0.8862 against the euro, off its early highs of 1.2821 and 0.8816, respectively. If the pound falls further, 1.25 and 0.90 are likely seen as its next support levels against the franc and the euro, respectively.

Reversing from its early highs of 141.32 against the yen and 1.2880 against the greenback, the pound fell to a 4-day low of 140.69 and a 5-day 1.2831, respectively. The next possible support for the pound is seen around 138.00 against the yen and 1.27 against the greenback.

U.S. markets will remain closed in observance of Martin Luther King Jr. Day.

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