February 23, 2016 - 4:54 PM EST
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Pound Extends Slide Amid Brexit Fears

(dpa-AFX) - The British pound continued to be weak against the other major currencies in the Asian session on Wednesday, amid uncertainty about the potential outcome of the Brexit referendum.
Prime Minister David Cameron has set a June 23 date for referendum on
membership in the EU.

The Bank of England is not making a judgment about the potential outcome of the Brexit referendum, Governor Mark Carney told lawmakers on Tuesday.

Carney said the monetary policy committee has room for additional stimulus. If the economy needs more stimulus, the bank will make asset purchases, including a variety of assets, he said at the Treasury Select Committee hearing.

Cameron struck a reform deal at a European Union summit on Friday that would give the

"special status" in the EU. Meanwhile,
Mayor Boris Johnson announced over the weekend that he would campaign for a British exit from the EU.

Meanwhile, the Asian stock markets fell due to falling crude oil prices and worries about


The GBP has been witnessing a spelling spree in recent sessions amid Brexit concerns. Since February 18th, the pound has lost 2.14 percent against the

dollar and 2.29 percent against the Swiss franc. The pound also lost 4.93 percent against the yen from April 15th and 1.73 percent against the euro from April 19th.

In the Asian trading, the pound dropped to nearly a 7-year low of 1.3964 against the

dollar and more than a 2-1/2-year low of 155.99 against the yen, from yesterday's closing quotes of 1.4022 and 157.16, respectively. If the pound extends its downtrend, it is likely to find support around 1.35 against the greenback and 148.00 against the yen.

Against the Swiss franc, the pound dropped to a 9-month low of 1.3856 from yesterday's closing value of 1.3895. On the downside, 1.35 is seen as the next support level for the pound.

The pound fell to nearly a 2-week low of 0.7887 against the euro, from yesterday's closing value of 0.7859. The pound may test support near the 0.80 area.

Looking ahead,

BBA mortgage approvals for January is slated for release later in the day.

In the

New York
new home sales data for January, Markit's flash service PMI report for February and
crude oil inventories data set to e announced.

German Bundesbank Chief Jens Weidmann holds a news conference in

at 8:00 am ET. At the same time, Federal Reserve Bank of Richmond President Jeffrey Lacker speak on "Can Monetary Policy Affect Economic Growth?" before the "Leaders + Legends" lecture series sponsored by the Johns Hopkins Carey Business School, in

At 12:50 pm ET, Bank of Canada Deputy Governor Lawrence Schembri is expected to speak at the Guelph Chamber of Commerce, in


Subsequently, at 1:10 pm ET, Bank of England Deputy Governor Jon Cunliffe will deliver a speech at London South Bank University.

Five minutes later, Dallas Federal Reserve Bank President Robert Kaplan is scheduled to speak at an engagement where he will likely comment on the outlook for the

economy and monetary policy, in

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Source: Equities.com News (February 23, 2016 - 4:54 PM EST)

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