Sterling drops as Brexit deal may not be finalized

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

  • FX Rates
    December 7, 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 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.

    CAD
    On 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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Cate Camerota
WRITTEN BY
Cate Camerota

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