EU warns no-deal Brexit likely; GBP/USD trades below 1.32
With a December 31 deadline quickly approaching, the EU warns that the most likely outcome has become a no-deal Brexit. Efforts continue in Brussels to try to finalize a deal by Sunday. Investors are moving towards risk-off assets as developments for the coronavirus and uncertainty around a US pandemic relief package weigh on sentiment.
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December 11, 2020
EUR/USD 1.2124 GBP/USD 1.3207 USD/CAD 1.2772 AUD/USD 0.7541 USD/JPY 104.04 USD/CNH 6.5360 USD/ILS 3.2505 USD/MXN 20.0805 USD/CHF 0.8894 USD/INR 73.6490
USDThe US dollar strengthened the most in a month. Traders moved within a slight risk-off sentiment amid stalled US stimulus talks. A spending bill is needed to keep the Fed government running past tonight, when current funding runs out.GBP
Sterling is on track for its worst week since September. GBP/USD fell as much as 0.9% overnight, hitting a low of $1.3135. The EU warned that the most likely outcome for Brexit would be a no-deal. Last ditch efforts to establish a deal before Sunday are continuing in Brussels.EUR
EUR is lower on the day, down about 0.2%. Despite the decline, the currency pair is heading for its best year since 2017.CAD
USD/CAD hit a low of 1.2707 Thursday amidst surging commodity prices. The currency pair is trading 0.3% higher today following comments from Bank of Canada Deputy Governor Beaudry that the USD/CAD exchange rate is very important to the BoC’s outlook for the economy.ASIA/PACIFIC
USD/JPY fell as much as 0.3%, the first move lower in four days. AUD/USD gained earlier in the trading session on commodity strength, the currency pair has held on to those gains hovering around the $0.7540 level.
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