If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

GBP/USD recaptures $1.34 on Brexit deal ‘buzz’

currency-newsGBP/USD recaptures $1.34 on Brexit deal ‘buzz’
The pound rallied on Tuesday as reports of a possible Brexit deal was cheered by GBP investors.
 
Sterling remains buoyed so far this morning as this optimism continues, with GBP/EUR climbing to €1.1089 and GBP/USD rallying to $1.3506. GBP/CAD has shot up to C$1.7158, while GBP/AUD and GBP/NZD hold steady at AU$1.7820 and NZ$1.8974, respectively.
 
Looking ahead, the Federal Reserve will be in the spotlight today as the US central bank concludes its final policy meeting of the year.
 

What’s been happening?

The pound shot higher through yesterday’s trading session as GBP investors pounced on reports of a ‘buzz’ in Westminster that the UK is heading for a Brexit trade deal with the EU.
 
However, these gains were tempered somewhat by mixed UK unemployment figures and concerns over London’s move to tier three coronavirus restrictions.
 
At the same time, the euro struggled to find support through Tuesday’s European trading session as EUR investors were unnerved by the looming ‘hard’ lockdown in Germany, and its potential impact on the Eurozone economy.
 
The US dollar, meanwhile, came under pressure yesterday following the news that a second coronavirus vaccine could soon be rolled out in the US after the FDA deemed Moderna’s vaccine as highly effective, with the resulting improvement in market sentiment dampening the appeal of the safe-haven ‘Greenback’.
 

What’s coming up?

Kicking off today’s session was the publication of the UK’s consumer price index, which has put some pressure on the pound this morning following a larger-than-expected drop in domestic inflation last month.
 
However, the key concern for GBP investors remains Brexit, where hopes for a deal continue to underpin Sterling strength.
 
Across the Channel, the focus this morning will be on the publication of the Eurozone’s latest PMI figures. December’s preliminary releases are expected to show that growth in the bloc’s private sector continued to contract, likely putting pressure on the euro as it fuels fears of a double dip recession in the Eurozone this winter.
 
Closing out today’s session will be the conclusion of Federal Reserve’s final policy meeting of 2020.
 
No policy changes are expected from the Fed this month, but the bank’s outlook for 2021 will be watched closely for any hints as to how the Fed could shape its monetary policy in the coming year.
 
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.