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UPDATE 1-Sterling steady as traders watch Brexit talks, await Supreme Court ruling

Mon, 23rd Sep 2019 13:13

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
(Updates prices, adds chart, quote and context)

By Olga Cotaga

LONDON, Sept 23 (Reuters) - Sterling held steady on Monday
as investors looked for signs of progress in Britain's Brexit
talks and awaited a Supreme Court ruling on whether Prime
Minister Boris Johnson misled Queen Elizabeth over his reasons
for suspending parliament this month.

Traders will be looking for any movement in Britain's
negotiations on leaving the European Union when Johnson meets
European leaders on the sidelines of a United Nations General
Assembly in New York.

Expectations for such progress were low, however, and the
substantial volume of short positions already built up on
sterling may shield the currency from any sharp declines,
analysts said.

Johnson is expected to meet European Council President
Donald Tusk as well as German and French leaders Angela Merkel
and Emmanuel Macron while he is in New York.

"We are sceptical of much in the way of progress being made
and on top of that there is also the risk of PM Johnson having
to cut his trip short to return to London if the Supreme Court
decision goes against the government," said MUFG analysts in a
note to clients.

Johnson suspended - or prorogued - the British parliament
for five weeks until Oct. 14 in a tactical move seen by critics
as an attempt to stop MPs from preventing Britain leaving the
bloc on Oct. 31. Scotland’s highest court of appeal ruled the
suspension unlawful, but Johnson appealed.

The Supreme Court said it will issue its decision at 0930
GMT on Tuesday.

If it rules against the government it would increase
political uncertainty in the country and "weigh on sterling a
little," said Jeremy Stretch, head of G10 forex strategy at
CIBC.

The collapse of British travel firm Thomas Cook
could also put some pressure on the pound as it highlighted the
weakness of the British retail sector, Stretch said, adding that
he sees "a drift lower for cable (pound/dollar) for now."

Sterling/dollar will likely trade around "$1.23 in the short
term," Stretch said.

By 1130 GMT, the pound was down 0.2% at $1.2448,
having dropped earlier to a six-day low of $1.2420, mostly due
to broad-based dollar strength.

The dollar index was up 0.2% at 98.68 after rising
earlier to a 1-1/2 week high of 98.832.

Against the euro, the pound was up 0.1% at 88.235 pence
.

Hedge funds have trimmed slightly their holdings of short
positions on the pound to $6.73 billion in the week to Sept. 17,
according to the Commodity Futures Trading Commission, but the
amount was still close to the two-year high of $7.81 billion it
reached last month.

Last Thursday the pound hit a two-month high after European
Commission President Jean-Claude Juncker said a Brexit deal was
possible. But on Friday traders' optimism dissipated and
sterling pulled back after Irish Foreign Minister Simon Coveney
said London and the European Union were not yet close to a
Brexit deal.

"In terms of Brexit news, the outlook for sterling is still
binary," said Jane Foley, senior currency strategist at
Rabobank.

"If optimism is extended, euro/sterling can be expected to
push back below the 0.88 level this year. By contrast, if hopes
that a deal could still be in place by the end of next month are
snuffed out, euro/sterling could be re-setting its sight on the
0.90 level and potentially above," Foley said.

(Reporting by Olga Cotaga; Editing by Hugh Lawson)

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30 Sep 2019 09:43

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24 Sep 2019 20:07

Germany to offer 380 mln euro bridging loan to Condor

BERLIN, Sept 24 (Reuters) - Germany has decided to guarantee a bridging loan of 380 million euros to Condor, the German airline owned by insolvent British travel operator Thomas Cook, Economy Minister Peter Altmaier said on Tuesday."Condor is a pr...

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24 Sep 2019 18:38

RPT-German govt, Hesse line up bridge loan of nearly 400 mln euros for Condor - sources

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24 Sep 2019 14:27

Thomas Cook collapse affects 53,000 British nationals in Spain - tourism minister

MADRID, Sept 24 (Reuters) - The collapse of British travel firm Thomas Cook has affected 53,000 Britons in Spain, Spanish Acting Tourism Minister Reyes Maroto told reporters on Tuesday.The ministry has been in touch with German and Swedish author...

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24 Sep 2019 12:18

UK accounting regulator mulls examining Thomas Cook failure

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24 Sep 2019 10:09

UPDATE 1-Windfall for investors that bet on Thomas Cook collapse

(Adding details throughout)LONDON, Sept 24 (Reuters) - A panel of bankers has ruled that some investors in Thomas Cook's credit derivatives worth as much as $2.7 billion are eligible for a payout following the world's oldest tour operator's collap...

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24 Sep 2019 09:33

Berlin to decide on loan for Thomas Cook's Condor within next days - Minister

BERLIN, Sept 24 (Reuters) - The German government will decide within the next coming days on whether to offer financial support to Condor, the German airline owned by insolvent British travel operator Thomas Cook, German Economy Minister Peter Al...

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24 Sep 2019 09:21

Investors that bet on Thomas Cook collapse will get paid out - panel

LONDON, Sept 24 (Reuters) - A panel of bankers has ruled that some investors in Thomas Cook's credit derivatives worth as much as $2.7 billion are eligible for a payout following the world's oldest tour operator's collapse on Monday, according to...

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24 Sep 2019 08:23

UK says bailing out Thomas Cook would have thrown "good money after bad"

LONDON, Sept 24 (Reuters) - The British government decided there was no point bailing out Thomas Cook as it would have been a waste of taxpayers' money to throw good money into a business that was not meeting the needs of its customers, the busine...

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24 Sep 2019 06:59

UPDATE 2-After Thomas Cook collapse, UK PM asks why bosses got paid millions

* Johnson questions bosses' pay ahead of collapses* Johnson says taxpayer has had to foot the bill* British state decided not to bail out Thomas Cook* UK plans to fly 135,300 people back, 16,500 people today (Recasts with Johnson)By Kylie MacLellan ...

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24 Sep 2019 06:59

UPDATE 3-After Thomas Cook collapse, UK PM asks why bosses got paid millions

* Johnson questions bosses' pay ahead of collapse* Johnson says taxpayer has had to foot the bill* British state decided not to bail out Thomas Cook* UK plans to fly 135,300 people back, 16,500 people today (Adds business secretary, customer comment...

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24 Sep 2019 06:59

UPDATE 1-UK plans to fly 135,300 people back after Thomas Cook collapse

(Adds details)LONDON, Sept 24 (Reuters) - Emergency flights brought 14,700 people back to the United Kingdom on Monday after the collapse of travel firm Thomas Cook, and around 135,300 more are expected to be returned over the next 13 days, Britai...

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24 Sep 2019 06:45

Thomas Cook Airline In Nordic Region To Resume Flights

Thomas Cook Airline In Nordic Region To Resume Flights

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24 Sep 2019 06:38

Thousands Of Thomas Cook Customers Flown Home Amid Anger Over Bonuses

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23 Sep 2019 20:49

Thomas Cook's Nordic unit to carry on after parent company's collapse

OSLO, Sept 23 (Reuters) - Thomas Cook's Nordic business, the Ving group, will continue operations as normal from Tuesday despite the collapse of the parent company on Monday, it said.Hundreds of thousands of holidaymakers were stranded by the col...

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