⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

FOREX-Dollar heavy amid stimulus progress, pound buoyed by Brexit hopes

Published 15/12/2020, 02:12
© Reuters.
EUR/USD
-
USD/JPY
-

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Kevin Buckland
TOKYO, Dec 15 (Reuters) - The dollar traded near 2-1/2-year
lows against major peers on Tuesday as demand for the safest
assets flagged amid progress toward agreeing U.S. fiscal
stimulus and optimism for a Brexit deal.
The greenback was near its weakest since mid-2018 versus the
riskier Aussie and kiwi dollars in early Asian trading with U.S.
lawmakers scurrying to ready $1.4 trillion in spending.
A $908 billion bipartisan COVID-19 relief plan will be split
into two packages, a person briefed on the matter said, raising
hopes that at least a large part of the plan that already has
bipartisan support will be approved. Across the Atlantic, European Union Brexit negotiator Michel
Barnier said that sealing a trade pact with Britain was still
possible, sowing hope that a deal can be reached with just days
to avert a turbulent exit for the UK from the trade bloc at the
end of the month. The British pound was little changed against the dollar at
$1.3332 GBP=D4 , after rising 0.8% on Monday. It reached a 2
1/2-year high of $1.3540 earlier this month.
The greenback slipped 0.1% to $1.2150 per euro EUR= ,
trading near a 2 1/2-year low of $1.2177 touched again on
Monday.
COVID-19 vaccine roll-outs in the U.S. and UK also buoyed
risk sentiment, but optimism was tempered by spikes in infection
and death rates. London will go into a tighter lockdown amid the
discovery of a new variant of the virus.
The dollar index was little changed at 90.688 USD= after
Monday sinking as low as 90.419, a level unseen since April
2018.
The currency was little changed at 104.00 yen JPY= ,
another traditional safe haven asset.
"With the roll-out of vaccines starting in the U.S. and the
UK, we expect shutdowns to reduce in frequency and intensity,
allowing the USD to resume its downtrend," Commonwealth Bank of
Australia currency analyst Joe Capurso wrote in a client note.
An agreement on fiscal stimulus would also "undermine" the
U.S. dollar, he wrote.
The Aussie rose 0.1% to 75.372 U.S. cents AUD=D4 after
touching the highest since June 2018 at 75.780 on Monday.
The New Zealand dollar also added 0.1% to 70.86 U.S. cents
NZD=D4 after reaching 71.20 the previous session for the first
time since April 2018.

========================================================
Currency bid prices at 10:11AM (111 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2159 $1.2143 +0.13% +8.45% +1.2161 +1.2144
Dollar/Yen JPY=D3 104.0570 104.0450 +0.00% -4.20% +104.1050 +104.0000
Euro/Yen EURJPY= 126.52 126.33 +0.15% +3.75% +126.5700 +126.3300
Dollar/Swiss CHF=EBS 0.8863 0.8869 -0.06% -8.40% +0.8870 +0.8864
Sterling/Dollar GBP=D3 1.3336 1.3327 +0.08% +0.57% +1.3343 +1.3312
Dollar/Canadian CAD=D3 1.2752 1.2767 -0.12% -1.84% +1.2761 +1.2751
Aussie/Dollar AUD=D3 0.7542 0.7532 +0.15% +7.50% +0.7544 +0.7530
NZ NZD=D3 0.7083 0.7082 +0.01% +5.26% +0.7090 +0.7079
Dollar/Dollar


All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX

(Editing by Sam Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.