⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

FOREX-Dollar in doldrums as progress on U.S. stimulus, Brexit deals dent safety bid

Published 12/17/2020, 08:52 AM
Updated 12/17/2020, 09:00 AM
© Reuters.
GBP/USD
-
AUD/USD
-
NZD/USD
-
DX
-

* Pound buoyed as EU chief says agreement closer
* Bitcoin rises to all-time high above $21,000
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Kevin Buckland
TOKYO, Dec 17 (Reuters) - The dollar languished near fresh
2-1/2-year lows against its major rivals on Thursday as progress
toward agreeing a U.S. stimulus package and a Brexit deal
boosted risk appetite at the expense of the safest assets.
Congressional negotiators were "closing in on" a $900
billion COVID-19 aid bill, lawmakers and aides said on
Wednesday, with the tone the most positive it's been in months.
Across the Atlantic, the European Union's chief executive
said a deal with the UK was nearer, although success wasn't
guaranteed. "As the world gets more optimistic about the outlook for
growth in 2021, the dollar has softened," said Michael McCarthy,
chief strategist at broker CMC Markets in Sydney.
"Further weakening of the dollar is on the cards."
The euro traded at $1.21945 EUR=EBS early in the Asian
day, after reaching $1.22120 on Wednesday, the strongest since
April 2018.
The pound bought $1.3500 GBP= having risen to $1.3553 the
previous session for the first time since May 2018.
The Federal Reserve on Wednesday vowed to keep funnelling
cash into financial markets until the U.S. economic recovery is
secure, a promise of long-term help that fell short of some
investors' hopes of an immediate move to shore up a recent
pandemic-related slide. The dollar index =USD jerked higher after the Fed's
announcement, but then sank back towards the day's low of
90.126, a level not seen since April 2018.
The greenback was little changed at 103.475 yen JPY=EBS ,
another safe haven currency.
The Australian dollar was also largely steady at 75.807 U.S.
cents AUD= , while its New Zealand peer slipped 0.1% to 71.05
U.S. cents NZD= .
Bitcoin traded at $21,342 after smashing through the $20,000
barrier for the first time overnight, and extending as high as
$21,420 on Thursday. "Bitcoin is still on its latest tear," Ray Attrill, head of
foreign exchange strategy at National Australia Bank in Sydney,
wrote in a client note.
"I still don't want one for Christmas."


========================================================
Currency bid prices at 9:36AM (036 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2194 $1.2202 -0.05% +8.78% +1.2202 +1.2192
Dollar/Yen JPY=D3 103.5170 103.4350 +0.09% -4.69% +103.5470 +103.4700
Euro/Yen EURJPY= 126.24 126.19 +0.04% +3.52% +126.3000 +126.1500
Dollar/Swiss CHF=EBS 0.8855 0.8849 +0.07% -8.49% +0.8857 +0.8855
Sterling/Dollar GBP=D3 1.3493 1.3511 -0.08% +1.79% +1.3507 +1.3499
Dollar/Canadian CAD=D3 1.2743 1.2738 +0.09% -1.86% +1.2749 +1.2739
Aussie/Dollar AUD=D3 0.7577 0.7579 +0.00% +8.01% +0.7586 +0.7568
NZ NZD=D3 0.7106 0.7114 -0.11% +5.60% +0.7112 +0.7104
Dollar/Dollar


All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX

(Editing by Shri Navaratnam)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.