Update on our pairs for this week, EUR/JPY in the limelight...
USD
There is little doubt about the damage inflicted by Sterling on renewed hopes of a Brexit deal, but the Dollar’s latest leg down came amidst widespread weakness vs G10 counterparts and beyond as risk sentiment is boosted due to hopes that vaccinations against the coronavirus will help to stop the spread and economies return to something more akin to normal once lockdowns are lifted or restrictions removed. On that very note, NY received its first assignment of the PFE/BNTX drug and administered doses following US FDA approval for emergency use, though the index has pared some losses between 90.419-907 parameters against the backdrop of tech sector underperformance after reports that the EU is planning to fine heavyweight companies as much as 10% of their annual valuation.
GBP
The Pound is some distance from best levels, but still well ahead of its major rivals as UK and EU negotiators continue discussions in an effort to bridge gaps on the last issues preventing the 2 sides from securing a trade agreement. In short, PM Johnson and European Commission President von der Leyen saw enough further progress and sufficient chance of reaching a pact to extend Sunday’s deadline so that respective teams can go the extra mile to resolve differences on the LPF and post-transition fishing rights. However, London and Brussels are still more than aware of the prospect of no deal and Cable has not been able to retain grip of the 1.3400 handle, while the Eur/Gbp cross could not sustain momentum through 0.9050 and has subsequently rebounded to 0.9100, perhaps in part on confirmation that London will return to top level COVID measures from midnight on Wednesday and Euro demand for the 4 pm fix.
There is little doubt about the damage inflicted by Sterling on renewed hopes of a Brexit deal, but the Dollar’s latest leg down came amidst widespread weakness vs G10 counterparts and beyond as risk sentiment is boosted due to hopes that vaccinations against the coronavirus will help to stop the spread and economies return to something more akin to normal once lockdowns are lifted or restrictions removed. On that very note, NY received its first assignment of the PFE/BNTX drug and administered doses following US FDA approval for emergency use, though the index has pared some losses between 90.419-907 parameters against the backdrop of tech sector underperformance after reports that the EU is planning to fine heavyweight companies as much as 10% of their annual valuation.
GBP
The Pound is some distance from best levels, but still well ahead of its major rivals as UK and EU negotiators continue discussions in an effort to bridge gaps on the last issues preventing the 2 sides from securing a trade agreement. In short, PM Johnson and European Commission President von der Leyen saw enough further progress and sufficient chance of reaching a pact to extend Sunday’s deadline so that respective teams can go the extra mile to resolve differences on the LPF and post-transition fishing rights. However, London and Brussels are still more than aware of the prospect of no deal and Cable has not been able to retain grip of the 1.3400 handle, while the Eur/Gbp cross could not sustain momentum through 0.9050 and has subsequently rebounded to 0.9100, perhaps in part on confirmation that London will return to top level COVID measures from midnight on Wednesday and Euro demand for the 4 pm fix.
