Sterling gains on Brexit deal

TOKYO (Reuters) Forex Signals | The British pound rose against the dollar and euro on hopes that Britain and the European Union will secure a free trade agreement after their decision to extend negotiations beyond the Sunday deadline.

The dollar traded near a 2 1/2-year low against major peers ahead of a U.S. Federal Reserve meeting ending Wednesday where policymakers are expected to increase purchases of longer-dated Treasuries to contain a rise in yields.

EU says Brexit deal still

London and Brussels agreed on Sunday to “go the extra mile” in coming days to try to reach an elusive trade agreement despite missing their latest deadline to avert a turbulent exit for Britain from the European Union at the end of the month.

Dollar Edges Higher; Sterling Expects Brexit Progress

The dollar, which has also been under selling pressure recently, faces a big week because of the Fed’s policy meeting.

Pound Euro (GBP/EUR) Exchange Rate

The dollar index against a basket of six major currencies stood at 90.793, close to a 2 1/2-year low. Investors have sold the dollar on expectations of a global recovery, buoyed by positive coronavirus vaccine news and hopes for further U.S. stimulus that should lift the market’s risk appetite.

Pound Higher on Brexit Deal

The dollar is also under pressure due to expectations that U.S. interest rates will remain low for an extended period.

“The secular trend remains overwhelmingly of U.S. dollar weakness,” Tapas Strickland, a director of economics at National Australia Bank (OTC:NABZY) in Sydney, wrote in a research note.

Pound drops as Brexit impasse

Elsewhere, the Chinese yuan traded at 6.5370 in the onshore market, little changed on the day. In the offshore market, the dollar slipped 0.2% to 6.5237 yuan.

Britain says Brexit trade deal

The Aussie dollar was little changed at 75.342 U.S. cents. Australian central bank minutes on Tuesday could prompt investors to scale back bets for additional monetary easing.

Sterling gains on Brexit deal

Forex Signals – Dollar Weakens Ahead of Sterling

Sterling gains on Brexit deal

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Sterling gains on Brexit deal