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FOREX-Euro jumps to near 2-month highs on Brexit deal

Published 10/17/2019, 06:57 PM
Updated 10/17/2019, 07:00 PM
© Reuters.  FOREX-Euro jumps to near 2-month highs on Brexit deal
DXY
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* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Saikat Chatterjee
LONDON, Oct 17 (Reuters) - The euro rallied to its highest
levels in nearly two months against the dollar on Thursday after
the European Union and Britain struck a Brexit deal.
Though the deal remains to be ratified by British lawmakers,
traders briefly sent the British pound GBP=D3 and the euro up
by more than one percent and 0.5 percent EUR=EBS respectively.
The euro has struggled, falling more than 3% so far this
year, as a broader economic slowdown in Europe fuelled by the
protracted trade war between Washington and China has hurt
investor sentiment towards the single currency.
But hopes of a Brexit deal this week has dragged the euro
out of a downtrend and pushed it above $1.11 for the first time
in a month.
Britain clinched a Brexit deal with the European Union on
Thursday, European Commission President Jean-Claude Juncker
said, just a few hours before the start of a summit of the
bloc's leaders in Brussels. "A move above $1.1210.. and the 200-day moving average is
needed to boost confidence that a low is in place," said Marc
Chandler, chief market strategist at Bannockburn Global Forex.
On Thursday, the single currency briefly gained 0.5% to
$1.1140 before trimming some gains to stand 0.4% up at $1.1112.
The euro's surge washed over into currencies that extended
gains against the struggling dollar.
Sterling surged more than 1% and British share prices
rallied on Thursday on the Brexit deal news. GBP/
Against a basket of its rivals .DXY , the greenback fell
0.4% to 97.496, its lowest since late-August.
The dollar also suffered in early London trading due to weak
U.S. data.
U.S. retail sales fell for the first time in seven months in
September while a report from the U.S. Federal Reserve described
the economy's progress in cautious terms. Elsewhere, the Norwegian crown weakened to an all-time low
of 10.1800 against the euro EURNOK=D3 . Some analysts blamed
the crown's recent weakness on global trade jitters, while
others said the speed and magnitude of the drop were hard to
explain. The Australian dollar AUD=D3 held near the day's highs, up
0.3% against the dollar after jobs data showed buoyant hiring,
lowering chances of monetary easing in November. AU/


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