Sterling extends move lower, weakening for third trading session
The British pound remains weak and trending lower as uncertainty around a final Brexit deal looms. The US dollar remains largely unchanged as investors weigh the lockdown’s impact to the economy versus the optimism of forthcoming vaccinations.
Please be sure to review our most recent advisory materials:
Use FX budget rates to improve global FP&A
Lease reporting rules force private companies to adapt
December 8, 2020
EUR/USD 1.2122 GBP/USD 1.3335 USD/CAD 1.2792 AUD/USD 0.7412 USD/JPY 104.10 USD/CNH 6.5170 USD/ILS 3.2455 USD/MXN 19.7715 USD/CHF 0.8888 USD/INR 73.5260
USDThe US dollar is trading mixed against its peers, the Bloomberg Dollar Spot Index (BBDXY) swinging between gains and losses. The US has yet to pass an additional pandemic relief package.GBP
GBP/USD has fallen more than 0.7% this week. Today, the currency pair fell as much as 0.4%, hitting a low of $1.3290. UK Prime Minister Boris Johnson made a statement that the situation is “very tricky” but hopes to reach a deal with the EU shortly.EUR
EUR/USD fell to a session low of $1.2096 early in the European trading session. The currency pair has bounced back towards $1.2125, then has remained largely unchanged. The European Central Bank meets later this week which will be a major focus for traders.CAD
USD/CAD remains largely unchanged hovering around the 1.28 handle. The loonie has remained steady against the greenback ahead of the Bank of Canada’s meeting set for Wednesday.ASIA/PACIFIC
Australia released data showing that business confidence surged in November. Iron ore futures strengthened, also supporting the Australian dollar. USD/JPY remains largely unchanged trading around 104.05.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory