© Reuters.File picture: In this picture you can see the pound and dollar bills
Yoruk Bahceli (Yoruk Bahceli)
Reuters AMSTERDAM-On Monday, as the Brexit trade deal remained the focus, the Swiss franc fell to a low of nearly seven months against the euro, and the dollar fell after US President Donald Trump signed the COVID-19 assistance bill, avoiding government restrictions. Drop.
At 0903 GMT, the Swiss franc fell 0.3% against the euro to 1
Ulrich Leuchtmann, head of foreign exchange research at Commerzbank Frankfurt, said: “What we see is that the continuation of Brexit risk is pricing.”
He said: “I think many market participants believe that the euro can replace the euro, otherwise the UK will be very difficult to be affected by the euro’s Brexit.” He added that investors may close such positions in subsequent transactions.
The euro rose 0.1% against the dollar to $1.22370, close to the 2 1/2-year high of $1.2273 reached this month.
In the United States, Trump signed a US$2.3 trillion pandemic aid and spending plan, thus avoiding the partial federal government shutdown that was supposed to begin on Tuesday.
The dollar fell 0.3% against a basket of currencies to 90.031, the lowest in a week.
The boost in risk appetite also hit safe-haven bonds, with the U.S. 10-year U.S. Treasury bond yield rising 2 basis points to 0.95%. The German 10-year benchmark yield was flat at -0.55%.
At the same time, the pound-to-dollar exchange rate rose 0.1% to 1.3551 US dollars, continuing to maintain the first high of 1.3625 US dollars since May 2018 touched earlier this month.
When Britain and the European Union announced a trade agreement on Thursday, prices were close to that level.
The pound fell 0.5% against the euro to 90.280 pence.
Jeffrey Haley, senior market analyst at OANDA, told customers: “The market may have to wait until next week to buy (pound sterling) again, because with the new regulations coming into effect, there will be a huge bottleneck in the English Channel. I’m worried.”
Analysts said that although the deal comforted investors, the crude nature of the agreement has made the UK and the EU farther and farther away, indicating that any subsequent gains will not be large and have plagued UK assets since 2016. The discount will not disappear. soon.
Brussels has not yet decided whether to allow Britain to enter the EU’s financial markets.
Mitsuo Imaizumi, chief foreign exchange strategist at Daiwa Securities in Tokyo, predicts that the pound and euro will fall against the dollar, reaching $1.30 and $1.15 respectively by the end of summer.
The Australian dollar, a trade-sensitive currency, edged up to 76.110 US cents, close to the 2 1/2-year high of 76.390 reached this month.
The yield on 10-year Southern European bonds has fallen by 2-3 basis points, and these bonds are considered high risk due to their low credit ratings.
After the appreciation of the renminbi, the People’s Bank of China raised the official guidance level to the highest level in 30 months. The exchange rate of the onshore market against the US dollar reached the highest level of 6.5280, but finally remained flat at 6.5408.
As of 3:55 pm EDT, Chinese stocks listed on the New York Stock Exchange closed down 0.3% to 6.5311.
The yen against the dollar rose slightly by 0.1% to 103.455. .
A summary of opinions issued at the December interest rate review meeting on Monday showed how far the Japanese central government’s policymakers should go in reviewing yield curve control, and some have called for a comprehensive review of the framework.