The British pound fell fluctuated below two and a half years high in the Asian session. The shift was due to last week’s agreement of a narrow Brexit trade deal that does not cover the U.K.’s financial sector.
The U.S. dollar shrugged off Trump’s decision to relent on a threat to block a coronavirus aid bill in thin trading on December 28.
The U.S. dollar index stood at 90.151, following a three-day slide. Meanwhile, the pound increased by 0.2% and settled at $1.3565. It is currently inching back toward the $1.3625 mark it reached earlier this month for the first time since May 2018.
Remarkably, Donald Trump signed into law the $2.3 trillion pandemic aid and spending package. The approval averted a partial federal government shutdown that would have started Tuesday.
Earlier, he had posted on his Twitter about the coronavirus Relief Bill. He had previously demanded a rise in stimulus checks for struggling Americans to $2,000 from $600.
Moreover, the euro was little changed at $1.3316. Earlier this month, it had its two and a half year high of $1.2273.
Furthermore, Brussels has made no decision yet to grant the United Kingdom access to the bloc’s financial market.
The British pound will hit $1.30, while the euro will touch $1.15
According to the chief FX strategist at Daiwa Securities in Tokyo, Mitsuo Imaizumi, the pound and euro will fall against the greenback. He said that by the end of the summer, the sterling would hit $1.30, while the euro will touch $1.15.
Additionally, the Australian dollar increased to 76.082 U.S. cents, close to its two and a half year high of 76.390, which it touched this month.
Furthermore, after China’s central bank lifted its official guidance level to the highest in 30 months, the yuan rose.
Offshore, the yuan increased by 0.1% and settled at 6.5200 per dollar, while onshore stood at 6.5296.
Moreover, the greenback weakened slightly to 103.455 yen.