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

FOREX-Euro hits two-year high, Switzerland named currency manipulator

Published 16/12/2020, 15:08
© Reuters.
USD/SEK
-
DX
-

(Adds Treasury report on Swiss franc, U.S. data, updates
prices; previous LONDON)
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Karen Brettell
NEW YORK, Dec 16 (Reuters) - Strong euro zone survey figures
and hopes of progress on Brexit negotiations pushed the euro
above $1.22 against the U.S. dollar on Wednesday for the first
time since April 2018.
The Swiss franc, meanwhile, gained briefly after the U.S.
Treasury labelled Switzerland a currency manipulator.
The euro has risen nearly 13% since the European Union
announced a recovery fund in May. Stronger economic activity
data in recent months have also boosted bets that Europe is
likely to outperform the United States in the coming months.
Those expectations got a further boost with manufacturing
survey data from Germany and France indicating that Europe's
biggest economies may be recovering quickly. and
Against the U.S. dollar, the euro EUR=EBS rose 0.31% to
$1.2186 after earlier reaching as high as $1.2211.
"European PMIs, Brexit and a likely dovish Fed are boosting
risk appetite in the currency markets," said Kenneth Broux, a
strategist at Societe Generale in London.
Ursula von der Leyen, the president of the European
Commission, said she could not say whether the EU and Britain
would reach a trade agreement, but progress had been made and
the next few days would be critical. Investors are also keeping an eye on the outcome of a
two-day Federal Reserve policy meeting on Wednesday.
Policymakers are expected to keep the U.S. overnight interest
rate near zero and signal it will stay there for years to come,
a decision that analysts say will further boost risk sentiment.
"There's a feel-good momentum in the market," said Bart
Wakabayashi, Tokyo branch manager of State Street Bank in Tokyo.
The dollar index, which measures the U.S. currency against a
basket of currencies, was last at 90.26 =USD , a level not seen
since April 2018.
The index slightly pared losses after data showed that U.S.
retail sales fell for a second straight month in November.
The Swiss franc briefly gained against the dollar after the
U.S. Treasury labelled Switzerland and Vietnam as currency
manipulators. It was last at 0.8846, with the dollar down 0.9%
against the currency on the day.
The Treasury said that through June 2020 both Switzerland
and Vietnam had intervened in currency markets to prevent
effective balance of payments adjustments. It is not surprising that the Trump administration might
make a case about currency manipulation, given recent "runaway
appreciation" of the Swissy, which is near six-year highs, said
Joe Manimbo, senior market analyst at Western Union Business
Solutions.
Meanwhile Bitcoin BTC=BTSP smashed through $20,000 for the
first time on Wednesday, its highest ever. Bitcoin has gained
more than 170% this year, buoyed by demand from larger investors
attracted to its potential for quick gains, purported
inflation-resistant qualities, and expectations it will become a
mainstream payment method. ========================================================
Currency bid prices at 8:48AM (1348 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.2600 90.4790 -0.23% +0.00% +90.5440 +90.1260
Euro/Dollar EUR=EBS $1.2186 $1.2151 +0.31% +8.72% +$1.2212 +$1.2145
Dollar/Yen JPY=D3 103.4400 103.6550 -0.23% -4.79% +103.7150 +103.2650
Euro/Yen EURJPY= 126.06 125.95 +0.09% +3.37% +126.1800 +125.7200
Dollar/Swiss CHF=EBS 0.8846 0.8855 -0.09% -8.57% +0.8861 +0.8826
Sterling/Dollar GBP=D3 $1.3527 $1.3470 +0.45% +2.01% +$1.3553 +$1.3436
Dollar/Canadian CAD=D3 1.2751 1.2698 +0.43% -1.84% +1.2762 +1.2697
Aussie/Dollar AUD=D3 $0.7561 $0.7556 +0.10% +7.79% +$0.7578 +$0.7546
Euro/Swiss EURCHF= 1.0780 1.0759 +0.20% -0.66% +1.0790 +1.0762
Euro/Sterling EURGBP= 0.9007 0.9022 -0.17% +6.54% +0.9054 +0.8994
NZ NZD=D3 $0.7091 $0.7091 +0.01% +5.39% +$0.7120 +$0.7085
Dollar/Dollar
Dollar/Norway NOK=D3 8.6920 8.7145 -0.24% -0.89% +8.7325 +8.6540
Euro/Norway EURNOK= 10.5940 10.5884 +0.05% +7.69% +10.6146 +10.5627
Dollar/Sweden SEK= 8.3597 8.3682 +0.04% -10.57% +8.3905 +8.3289
Euro/Sweden EURSEK= 10.1890 10.1848 +0.04% -2.68% +10.2010 +10.1680


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.