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2015.11.2305:15:00UTC+00Pound Falls Amid Risk Aversion

The pound slipped against its major rivals in European deals on Monday, as European stocks slipped, with weak commodity prices hitting energy and mining stocks.

Gold fell close to a near 6-1/2-year trough as a impending Fed interest rate hike and a resultant firm dollar continued to dim the bullion's safe-haven appeal.

Crude oil prices collapsed after Venezuela predicted prices may drop as low as the mid-$20s a barrel unless the OPEC takes action to stabilize the market.

Upbeat PMI reports from eurozone and Germany did little to cheer investor sentiment.

Traders focus on an unscheduled U.S. Federal Reserve meeting later in the day to discount interest rates charged to commercial banks and other financial institutions.

The pound showed mixed trading in the Asian session. While the pound rose against the yen, it held steady against the euro. Against the greenback and the franc, it dropped.

Reversing from an early high of 0.6992 against the euro, the pound slipped to 0.7018. The pound is likely to locate support around the 0.715 zone.

Flash survey data from Markit showed that the euro area private sector expanded at the fastest pace in four-and-a-half years in November.

The composite output index rose to a 54-month high of 54.4 in November from 53.9 in October. It was also above the expected score of 54.

The pound, having advanced to 186.98 against the Japanese yen at 12:00 am ET, reversed direction with the pair trading at 186.51. The pound is seen finding support around the 184.00 level.

The pound depreciated to near a 2-week low of 1.5141 against the greenback, and held steady thereafter. The next possible support for the pound is seen around the 1.50 area. At Friday's close, the pair was quoted at 1.5186.

The pound fell to 1.5426 against the franc, its lowest since November 18. The pound-franc pair was worth 1.5456 when it ended last week's trading. On the downside, the pound may possibly find support around the 1.53 region.

Figures from the Swiss National Bank showed that Swiss money supply growth accelerated slightly in October after easing in the previous three months.

M3, the broad measure of money supply, rose 1.4 percent year-over-year in October, faster than September's 1.3 percent climb. In August, money supply had also risen 1.4 percent.

Looking ahead, flash U.S. manufacturing PMI for November and existing home sales data for October are set to be released in the New York session.

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