Pound jumps on Brexit deal promise

News broke that the EU and UK reached an outline for a Brexit trade deal, allegedly coming to an agreement over heavily contested fishing rights. The pound neared YTD highs, and the euro held steady. The dollar edged lower versus most G-10 currencies as Nancy Pelosi and Congress work together to amend the existing stimulus package. Trading is overall light ahead of the Christmas holiday.

"Bless this highly nutritious microwavable macaroni and cheese dinner and the people who sold it on sale. Amen."
Kevin McCallister, Home Alone
  • FX Rates
    December 24, 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 lost ground to G-10s including the euro and pound as a Brexit deal sounds imminent. Congress is attempting to find common ground that includes $2,000 direct payments to Americans. Trump has until 12/28 to sign the deal.
    GBP
    Sterling rallied as news broke that a Brexit deal is within “touching distance” per PM Johnson. The currency is nearing the YTD high previously reached Dec 12th.
    EUR

    The euro posted marginal gains versus the dollar mostly driven by the softer US currency, Brexit deal hopes and month end fixing.

    CAD
    The Canadian dollar is up for the second session in a row in broad dollar weakness as oil falls and gold prices climb.
    ASIA/PACIFIC

    The yen ticked up but remains mostly rangebound in light volume. The onshore yuan strengthened slightly to 6.531 per USD. China kicked off an investigation into Alibaba and alleged monopolistic practices sending the stock of the tech giant down more than 8%.

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.

Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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