Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Euro beats yen, sterling as Brexit, U.S. stimulus boost risk appetite

ForexDec 28, 2020 03:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Pound and U.S. dollar bills are seen in this illustration

By Karen Brettell

NEW YORK (Reuters) -The euro was boosted on Monday as risk sentiment improved in the wake of Britain's trade deal with the European Union and U.S. President Donald Trump's decision to approve a new fiscal stimulus package.

Britain on Thursday clinched a narrow Brexit trade deal with the EU, just seven days before it exits one of the world's biggest trading blocs in its most significant global shift since the loss of its empire.

"What we are seeing is a continuation of the pricing out of hard Brexit risk," said Ulrich Leuchtmann, head of FX research at Commerzbank (DE:CBKG) in Frankfurt.

Risk sentiment also improved after Trump on Sunday signed into law a $2.3 trillion pandemic aid and spending package, restoring unemployment benefits to millions of Americans and averting a federal government shutdown.

The euro gained 0.43% to 126.77 yen. It reached a seven-month high of 1.0892 against the Swiss franc, before falling back to 1.0858, up 0.04% on the day.

The single currency was down 0.09% against the U.S. dollar at $1.2209.

It gained 1.00% against sterling to 0.9077.

Sterling has underperformed since the Brexit deal was reached, with traders saying the news was likely priced in.

Also "I would argue that this is markets slowly but surely acknowledging that this is not an optimal deal for the UK," said Andreas Steno Larsen, global chief FX and rates strategist at Nordea in Copenhagen.

"This is rather a very slim deal that merely avoids the cliff edge, but there are still large gaps that will have to be dealt with in 2021, and frictionless trade is not secured," Larsen said.

The British pound dipped 0.66% against the U.S. dollar to $1.3447, and was holding below a two-and-a-half-year high of $1.3625 reached on Dec. 17.

Bitcoin climbed 2.74% to $26,695 but was below a record high $28,378 reached on Sunday.

"There is a lot of enthusiasm among (crypto) traders who truly believe in this asset class, and they know that the rally has only begun because we were only recovering losses for the past few years," Naeem Aslam, chief market analyst at AvaTrade, said in a report.

The dollar gained 0.14% against a basket of currencies to 90.32.

Investors are betting the dollar will continue to decline - it fell more than 6% this year - on expectations the Federal Reserve will hold interest rates near zero and the U.S. economy will struggle to recover from coronavirus-related shutdowns.

Win Thin, global head of currency strategy at Brown Brothers Harriman, expects the dollar index to test its February 2018 low of 88.25. Then "what happens to the greenback after that will largely depend on how well the U.S. controls the virus in 2021 as well as the outlook for further fiscal stimulus," Thin said in a report.

The dollar slipped 0.16% against the Canadian dollar to $1.2848.

========================================================

Currency bid prices at 3:05PM (2005 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 90.3210 90.2010 +0.14% +0.00% +90.3800 +89.9780

Euro/Dollar $1.2209 $1.2220 -0.09% +8.90% +$1.2253 +$1.2179

Dollar/Yen 103.8450 103.6550 +0.16% -4.41% +103.8900 +103.4200

Euro/Yen 126.77 126.23 +0.43% +3.95% +126.9500 +126.0700

Dollar/Swiss 0.8895 0.8912 +0.01% -8.07% +0.8919 +0.8877

Sterling/Dollar $1.3447 $1.3570 -0.66% +1.37% +$1.3573 +$1.3429

Dollar/Canadian 1.2848 1.2868 -0.16% -1.09% +1.2875 +1.2814

Aussie/Dollar $0.7576 $0.7588 -0.34% +7.98% +$0.7622 +$0.7559

Euro/Swiss 1.0858 1.0854 +0.04% +0.06% +1.0892 +1.0851

Euro/Sterling 0.9077 0.8987 +1.00% +7.37% +0.9091 +0.8992

NZ $0.7101 $0.7099 -0.31% +5.53% +$0.7138 +$0.7085

Dollar/Dollar

Dollar/Norway 8.6465 8.6400 +0.14% -1.36% +8.6820 +8.5985

Euro/Norway 10.5584 10.4829 +0.72% +7.32% +10.6220 +10.5102

Dollar/Sweden 8.2813 8.2318 +0.54% -11.40% +8.2952 +8.2179

Euro/Sweden 10.1147 10.0604 +0.54% -3.39% +10.1245 +10.0567

Euro beats yen, sterling as Brexit, U.S. stimulus boost risk appetite
 

Related Articles

Dollar retreats as risk appetite rebounds
Dollar retreats as risk appetite rebounds By Reuters - Sep 23, 2021 6

By Saqib Iqbal Ahmed NEW YORK (Reuters) -The dollar fell across the board on Thursday as improved risk sentiment in global financial markets erased all the gains it notched in the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Shafiq Khan
Shafiq Khan Dec 28, 2020 2:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Euro USD would be fluctuate b/w 1.2000. to 1.3000 in 2021.
Josh Davis
Josh Davis Dec 27, 2020 10:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When m2 increases and velocity slows= dollar crashes
Hass Global Hedge
Hass Global Hedge Dec 27, 2020 10:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Plz explain..
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email