Dollar weakens, Sterling moves higher on Brexit optimism

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.  

“It’s amazing what you can get if you quietly, clearly, and authoritatively demand it.”
Meryl Streep
  • 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.


  • 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.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.

Cate Camerota
WRITTEN BY
Cate Camerota

Insights from SVB Industry Experts

 
SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Market risk appetite boosts commodity-linked currencies

 

US dollar reversed two-day decline following broader risk sentiment

 

Daily FX Update: USD remains under pressure as markets maintain risk appetite

 

Daily FX Update: Risk-on trading supports commodity-linked currencies

 

Daily FX Update: Inflation concerns push the USD higher

 

Dollar gains vs. other safe havens