Dollar weakens, Sterling moves higher on Brexit optimism

Cate Camerota

December 9, 2020

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.

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FX Rates
December 9, 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.

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
USD
The 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.
EUR
EURUSD 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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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Cate Camerota

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