FOREX-U.S. dollar dips as Brexit trade deal nears; sterling gains
* Brexit deal is imminent, pound sterling rises * Dollar falls despite Trump's threat of economic stimulus package * Euro hits 1.22 USD, Aussie adds 0.7% * Chart: Worldwide exchange rates in 2020 https://tmsnrt.rs / 2RBWI5E (Add Comment, Update Prices) By Gertrude Chavez-Dreyfuss NEW YORK, Dec 23 (Reuters) - The dollar slipped after three consecutive sessions on Wednesday as risk appetite rose amid expectations of an upcoming Brexit trade deal between the UK and the European Union rose. The pound sterling and euro gained against the greenback after the headlines of Brexit, as did currencies such as the Australian, Canadian and New Zealand dollars, which were tied to a higher risk appetite. The UK and the European Union appeared close to reaching an elusive trade deal on Wednesday. A reporter for the UK Daily Mail said a deal had already been made and there was speculation that UK Prime Minister Boris Johnson would make an announcement on Wednesday night. US Treasury yields rose in line with those in Europe and the UK on the Brexit news. In afternoon trade, the dollar fell 0.1% to 90.39. The dollar index has weakened more than 6% this year as investors bet that the US Federal Reserve will keep its monetary policy extremely accommodative. The expectation of a further decline in the dollar is helping to revive equity markets and emerging market currencies. "We have a lower uncertainty premium compared to March. The addition of the vaccines ... basically established what we have known since the summer, which is a weaker dollar," said Mazen Issa, senior FX strategist at TD Securities in New York. David Rosenberg, chief economist and strategist at Rosenberg Research, said in a research note that engineering measures point to an increasing likelihood of an oversold dollar rebound. "Longer term, the dollar remains negative - trend, moving averages and medium term momentum all remain in downtrends," he added. US data on Wednesday was mixed but had little impact on the currency. Initial jobless claims fell unexpectedly last week but remained elevated, and a separate report showed that consumer spending fell last month for the first time since April. New home sales in the US were also disappointing. The euro rose 0.2% to $ 1.2180. The single currency hit its highest level in more than two and a half years earlier this month. The pound sterling appreciated against the dollar and rose above $ 1.35. The pound, which had previously strengthened with the lifting of a French border blockade, recently rose 0.9% to $ 1.3482. Against the euro, the pound rose 0.8% to 90.33 pence. The headlines of Brexit overshadowed President Donald Trump's threat to veto the US economic law. Trump said the long-awaited stimulus package should be changed to increase the amount on stimulus reviews - which could potentially upset the bill. Elsewhere, the Australian dollar rose 0.7% against the dollar to $ 0.7575, partly compounded by signs that a small COVID-19 outbreak in Sydney could be contained. The New Zealand dollar also rose 0.7% to $ 0.7091. ================================================== ====== Bid prices at 3:05 p.m. (2005 GMT) Description RIC Last US Close Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar Index 90.3980 90.4660 -0.07% + 0.00% +90.6710 +90.1510 Euro / Dollar $ 1.2180 $ 1.2162 + 0.16% + 8.66% + $ 1.2221 + $ 1.2155 dollars / yen 103.5900 103.6150 -0.03% -4.69% + 103.6450 + 103.3550 euros / yen 126.16 126.04 + 0.10% + 3.45% + 126.3800 +125.9400 dollars / Swiss 0.8890 0.8893- -8.15% +0.8911 + 0.8870 sterling / dollar 1.3482 $ 1.3377 + 0.78% + 1.64% + 1.3569 $ + 1.3361 dollar / Canadian 1.2856 1.2908 -0.40% -1, 03% +1.2914 +1.2835 Aussie / dollar 0.7574 $ 0.7520 + 0.73% + 7.96% + 0.7591 $ + $ 0.7519 euros / Swiss 1.0827 1.0818 + 0.08% -0.23% +1.0858 +1.0812 euros / pound sterling 0.9031 0.9101 -0.77% + 6.83% +0.9109 +0.9003 NZ $ 0.7090 $ 0.7043 + 0.67% + 5.36% + $ 0.7103 + $ 0.7031 dollars / dollars dollars / Norway 8.6525 8.7390 -1.14% -1.51% + 8.7545 + EUR 8.6350 / Norway 10.5400 10.6172 -0.73% + 7.14% +10.6610 +10.5256 dollars / Sweden 8.2955 8.3487 -0 .35% -11.26% +8.3529 + 8.2781 Euro / Sweden 10.1039 10.1391 -0.35% -3.49% +10.1640 +10.0993 (reporting by Gertrude Chavez-Dreyfuss; Arrangement by Louise Heavens and Cynthia Osterman)
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