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.

Please be sure to review our most recent research material below:
Use FX budget rates to improve global FP&A
Lease reporting rules force private companies to adapt

  • FX Rates
    December 11, 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 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.

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.

Global stocks reach all-time highs on strong China GDP, soft US bond yields

 

Daily FX Update: Lower dollar, higher stocks amid upbeat US earnings & economic data

 

Daily FX Update: Stocks firm, dollar lower ahead of bank earnings reports

 

Daily FX Update: CPI exceeds expectations, stocks and dollar mixed

 

Daily FX Update: Stocks & dollar lower ahead of inflation and retail sales data

 

Daily FX Update: Treasuries, Dollar tick higher to end week