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.
December 15, 2020
EUR/USD 1.2157 GBP/USD 1.3375 USD/CAD 1.2741 AUD/USD 0.7537 USD/JPY 103.7600 USD/CNH 6.5284 USD/ILS 3.2561 USD/MXN 20.2277 USD/CHF 0.8866 USD/INR 73.6400
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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