New virus strain weighed on the euro and sterling


The euro was down 0.31% and stood at $1.2209 at 0802 GMT. Meanwhile, the sterling was losing 0.33% at $1.3422 after a 2.5% decline during the previous trading session.

Furthermore, the British sterling was also flat at 90.95 pence versus the euro after sustaining heavy losses amid the transport crisis on Monday.

According to Ulrich Leuchtmann, an analyst at Commerzbank, new optimism for a Brexit deal before December 30. Talks between the British Prime Minister and the French President on the supply of goods to the island have again sustained new hope. It made the euro and the sterling look under the 0.91 marks.

The country’s economic return was a bit swifter than imagined

Another positive for the sterling was data revealing that the country’s economic return from its COVID-19 crash. The comeback was a bit swifter than previously imagined in the July-September period.

The U.S. dollar index, which gauges the currency’s strength versus a basket of currencies, increased by 0.16%. It settled at 90.279 after the U.S. Congress agreed on a new U.S. stimulus package.

In Asia, the Australian dollar declined by 0.4% and settled at $0.7554. The New Zealand dollar fell by 0.55% and touched 0.7065.

The yuan, increased by approximately 10% on the dollar since a March low, has been steady for nearly a week. It stood at 6.5448 per dollar on December 22.

Furthermore, the greenback’s boosts come in a market that is heavily positioned for a weaker dollar. Additionally, pricing a pandemic return boosts commodity prices and benefits exporters and their currencies at the expense of the dollar.

Overall bets’ value versus the greenback eased a fraction last week but remained close to nine-year highs hit in September.

  • Support
  • Platform
  • Spreads
  • Trading Instument

For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE!


Leave a Reply