Dollar weakens, Sterling moves higher on Brexit optimism
A new proposal for a pandemic relief package in the US boosted demand for risk assets and pushed the US dollar lower. House Speaker Nancy Pelosi called Treasury Secretary Steven Mnuchin’s $916 billion proposal “progress.” GBPUSD snapped a three day losing strike as investors are hopeful for successful Brexit talks in Brussels.
December 9, 2020
EUR/USD 1.2112 GBP/USD 1.3428 USD/CAD 1.2792 AUD/USD 0.7473 USD/JPY 104.20 USD/CNH 6.5185 USD/ILS 3.2505 USD/MXN 19.7575 USD/CHF 0.8884 USD/INR 73.5565
USDThe dollar is lower as markets moved to risk-on sentiment over optimism for pandemic relief package and Brexit. The dollar dropped to 2-year lows.GBP
Sterling climbed as much as 0.8%, hitting a level of $1.3478, and reversing three days of losses. UK Prime Minster Boris Johnson is meeting with European Commission President Ursula von der Leyen in Brussels later today. Investors are still concerned that the UK is running out of time to strike a deal. Options to hedge against a weaker GBP are increasingly expensive.EUREURUSD trading within a tight range of 1.2101 – 1.2147. European Central Bank is set to release its interest rate decision tomorrow morning.CAD
Bank of Canada is due to release rate decisions at 10am EST today. Expectations are for the bank to keep an extremely accommodative policy.ASIA/PACIFIC
The Australian dollar pushed towards its highest level in more than two years following the strongest consumer confidence numbers in a decade. AUDUSD has railed more than 0.5% hitting a high of $0.7485.
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