Dollar mixed, Europe locking down, Brexit deal hopeful

The US dollar is mixed in the FX markets, as traders digest multiple headlines: positive vaccine deployment news; new lockdowns in Europe; the electoral college declaring Biden’s victory official; and progress on the US stimulus package and the UK-EU Brexit deal.

US stocks are opening higher, US Treasury yields are steady, oil is flat and gold is trading higher. Traders await the Fed’s monetary decision tomorrow. Russian President Vladimir Putin finally congratulated President-elect Biden on winning the presidency.
“Tremendous amounts of talent are being lost to our society just because that talent wears a skirt.”
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  • FX Rates
    December 15, 2020

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The dollar is mixed overnight against it peer currencies, with the dollar index effectively unchanged. The British pound is the top performing currency, the New Zealand dollar the worst performer. Trading is light, as investors digest multiple geopolitical events, Covid-19 news, and await key central bank monetary decisions, including those of the Fed, Bank of England, and Bank of Japan.

    GBP

    The UK pound is the top performing currency overnight, gaining about 0.4% versus the US dollar. There is still hope that a Brexit trade deal can be reached by year-end, possibly as soon as this week.

    EUR

    The euro is little changed overnight, as lockdowns are being re-introduced in London and Germany tomorrow, and the Netherlands and Italy soon after that. European bourses are all slightly in the green. German bund yields remain soft, the 10-yr trades at -0.62%.

    CAD

    The Canadian dollar continues to be strong versus the US dollar, the USD/CAD trading under 1.28 for the eighth straight day. Traders await a speech later today by Bank of Canada Governor Tiff Macklem.

    ASIA/PACIFIC

    The Chinese yuan made small gains versus the dollar despite weaker than expected Foreign Direct Investment (into China) data for November.

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Scott Petruska, CFA
WRITTEN BY
Scott Petruska, CFA

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