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Currencies: FOREX calm, £ weakened after UK/EU Brexit deal

28/12/2020
Source : zonebourse.com
Categories: Economy/Forex

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Little volatility on the FOREX on Monday, with the Dollar weakening at the margin (-0.1% to 1.2200/E) while the yield of T-Bonds tightened by 2Pts to 0.95 %, ie the opposite of what is observed on the 'Bunds' (-2Pts basis).

After a week of suspense, Donald Trump resolved to ratify yesterday an activity recovery plan ($900 billion + $600 checks to households in difficulty) which will allow millions of Americans (unemployed at the end of rights, precarious employees) to avoid finding themselves in a critical situation (impossibility of paying rents, reimbursing mortgage or student loan maturities, etc.).
The reason for the blockage? Trump wanted the 'cheque' to be $2,000 (some sort of end-of-term gift?) per household...and it was his own majority members who rejected that far more generous request.

Almost no economic indicator is on the agenda for the week, but on Monday we learned of an increase in unemployment of +0.9% in November in France, to 3,828 million in category 'A' .

The Pound is down -0.7% against the $ (around 1.343/$), 4 days after the signing of a trade agreement (after the close of markets) on Thursday... as many apparently expected.

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