The Federal Reserve (Fed) gave a broad but temporary lift to a bruised U.S. Dollar on Wednesday when it made what some economists perceived as an almost half-hearted attempt at aiding the world's largest economy in its battle with a third and largest wave of coronavirus infections to date. 

December 16,2020

The Dollar was down for the count against all major currencies on Tuesday but within recent ranges, although declines could be fueled over the coming sessions by the Federal Reserve, which could be about to target longer U.S. government bond yields with its quantitative easing programme. 

December 15,2020

Exchange rate options

The foreign exchange options market - which offers closes on the near-term outlook for the British Pound - shows traders have now scaled back expectations for a disruptive 'no deal' scenario to trade talks.

December 14,2020

The Pound-to-Dollar rate faces a testing period of heightened volatility and political theatre as a likely-phoney war plays out in the Brexit trade negotiations, although the latest manoeuvres from the two sides could offer Sterling an attempt at stabilisation on Monday. 

December 13,2020

Sterling suffered a second consecutive drubbing on Friday as the market scrambled price-in the seemingly diminishing prospects of a Brexit trade agreement, taking the Pound-to-Dollar exchange rate back toward the midpoint of a six month range that reflects little better than 50/50 odds for a deal.

December 13,2020

Exchange rates

Research from TD Securities shows the likely negative impact on the value of the Pound from a 'no deal' post-Brexit trade outcome will be relatively contained, with the currency likely to retest September lows.

December 8,2020

Cost of hedging

Data from Reuters shows the cost of hedging against a sizeable fall in the value of Pound Sterling has shot higher, in sympathy with growing anxieties for a 'no deal' outcome to trade negotiations.

December 7,2020

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