Pound jumps on Brexit deal promise

Kathryn Garvey

December 24, 2020

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.

EUR/USD 1.2191
GBP/USD 1.3602
USD/CAD 1.2828
AUD/USD 0.7603
USD/JPY 103.66
USD/CNH 6.5148
USD/ILS 3.2164
USD/MXN 19.8780
USD/CHF 0.8906
USD/INR 73.54
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 12^th.
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%.

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Source: Bloomberg

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

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WRITTEN BY

Kathryn Garvey

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