Sterling drops as Brexit deal may not be finalized
The British pound dropped the most since September, falling as much as 1.6% following comments from a British official that Brexit trade talks could collapse if progress is not made within the next few hours. The two sides are still holding strong on their longstanding disagreement over fishing rights. In the US, President Trump and Senate Majority Leader Mitch McConnell are expected to come “on board” with a $908 billion relief package.
This week's Economic data:
Wednesday: Bank of Canada Rate Decision
Thursday: US CPI, ECB Deposit Facility, US Initial Jobless Claims
December 7, 2020
EUR/USD 1.2135 GBP/USD 1.3328 USD/CAD 1.2798 AUD/USD 0.7430 USD/JPY 104.06 USD/CNH 6.5235 USD/ILS 3.2595 USD/MXN 19.8350 USD/CHF 0.8898 USD/INR 73.9015
The dollar index was little changed following a report that President Trump and Senate Majority Leader McConnell were “on board” with a $908 billion pandemic relief package. The dollar benefited from the drop in sterling following negative Brexit news.GBP
Speculation that the UK and EU could strike a deal boosted the British currency against the greenback by over 8% since June. However, overnight the pound has given back some of those gains from negative Brexit news.EUR
EUR/USD climbed up towards key resistance at 1.2150, hitting a high of 1.2140. The currency pair has since retreated, but it holding above the 1.21 handle.CADOn Friday, Canada released data that showed the country added 62,100 jobs vs. the 20,000 expected. USD/CAD hit a low of 1.2775 and has retreated above 1.28. The currency pair continues to hold ground within the 1.28 handle.ASIA/PACIFIC
The Japanese yen strengthened earlier in the session following news that the US is preparing to sanction at least a dozen more Chinese officials over the disqualification of Hong Kong legislators. The currency pair remains largely unchanged over the weekend hovering around the 104.20 level.
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