Brexit

FOREX-Dollar falls, sterling jumps as Brexit deal hopes lift risk appetite

By Suzanne Barlyn

Dec 14 (Reuters)The dollar hovered near two-year lows on Monday as riskier currencies got a boost from progress on COVID-19 vaccines and the possibility of a U.S. coronavirus relief plan.

The greenback last traded little changed to 90.7040, down 0.07%, as an intensive care unit nurse became the first person in the United States to receive the vaccine developed by Pfizer Inc PFE.N and German partner BioNTech SE BNTX.O on Monday.

Its arrival provided some relief as the country passed the grim milestone of 300,000 lives lost on Monday.

“It’s one of those days where we are settling down and understanding just how successful we may be in distributing these vaccines,” said Juan Perez, senior foreign exchange trader and strategist at Tempus, Inc. “That has created a very strong risk-on sentiment.”

The vaccine comes as negotiators in the U.S. Congress were nearing agreement

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Dollar falls; sterling up 1.5% as Brexit deal hopes lift risk appetite

LONDON (Reuters) – The dollar fell close to two-year lows on Monday as renewed hopes for a Brexit deal and fiscal stimulus in the United States, as well as progress on Covid-19 vaccines, lifted riskier currencies.

FILE PHOTO: Pound and U.S. dollar bills are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration

The pound gained after the UK and European Union agreed on Sunday to continue Brexit talks and the EU’s chief negotiator said a deal was still possible.

At 1220 GMT, the pound was up 1.5% versus the dollar, at $1.3423 – a jump from its low point of $1.3135 on Friday. Versus the euro, it was up around 1.1% at 90.535 pence.

“Despite being a very close call at this stage, we still think a deal is the most likely scenario and therefore expect a GBP rally to materialise in the next two weeks,” ING strategists

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GLOBAL MARKETS-Revived Brexit hopes lift stocks and sterling

By Marc Jones

LONDON/SYDNEY, Dec 14 (Reuters)Stocks began the week with robust gains as investors gauged the chance of added U.S. fiscal and monetary stimulus, while the British pound rose as a last-gasp extension to Brexit talks dodged a difficult divorce.

Europe opened with stocks .STOXX up 0.75% and the euro up on the dollar .EU after London and Brussels agreed on Sunday to “go the extra mile” to try to reach a trade agreement.

“We are going to give every chance to this agreement … which is still possible,” the European Union’s Brexit negotiator, Michel Barnier, told journalists before updating envoys from the 27 EU countries on Monday.

“Two conditions aren’t met yet. Free and fair competition … and an agreement which guarantees reciprocal access to markets and waters. And it’s on these points that we haven’t found the right balance with the British. So we

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British pound sees a pop as U.K. and EU set to go ‘the extra mile’ on Brexit deal

Financial markets were set to parse news that U.K. and EU leaders agreed that they should go “the extra mile” to try to find a compromise on a trade deal, following a Sunday phone conversation.

In a joint statement, U.K. Prime Minister Boris Johnson and Ursula von der Leyen, the president of the European Commission, acknowledged that “deadlines have been missed over and over” during protracted negotiations extending over the past 10 months on their future trade relationship.

Sunday had been viewed as a firm date for an agreement to occur or for a signal that a no-deal Brexit would be at hand with the Dec. 31 deadline for a pact to be struck looming.

The British pound appeared to react favorably, rising against the euro and the U.S. dollar in trade, on reports of an extension of talks.

In recent action on Sunday in New York, the pound
GBPUSD,

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Sterling rises on hope for Brexit deal, dollar swoons before Fed

By Stanley White



a group of people posing for a photo: Pound and U.S. dollar bills are seen in this illustration


© Reuters/Dado Ruvic
Pound and U.S. dollar bills are seen in this illustration

TOKYO (Reuters) – The British pound rose against the dollar and the 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 eased slightly 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.

The rally in sterling may not last, some analysts warn, because Britain and the EU have repeatedly struggled to narrow their differences and there is still a risk that trade and business will be thrown into chaos without an agreement.

“This is a temporary move higher in the pound, but it is still not clear that a no-deal scenario can be avoided,” said Junichi Ishikawa, senior foreign exchange

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Relieved pound jumps as Brexit talks go beyond deadline

FILE PHOTO: Pound banknotes are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration

LONDON (Reuters) – The British pound gained a percent against the dollar and the euro in relief after Britain and the European Union agreed to continue talks on post-Brexit trade beyond Sunday’s deadline.

Against the dollar, the pound rose 1.1% to $1.3360, compared with Friday’s close of $1.3222. Against the euro, it strengthened 1 percent to 90.58 pence.

While trading was largely illiquid in late Sunday hours, the jump in the value of the pound pointed towards a relief rally for the British currency on Monday, after it fell to a one-month low last week on concern that Britain would crash out of the EU’s orbit without a deal in place.

British Prime Minister Boris Johnson and the president of the EU’s executive Commission, Ursula von der Leyen, had given negotiators a Sunday deadline to

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UK business and farming leaders implore Johnson to avoid no-deal Brexit

Business, food and farming leaders have implored Boris Johnson to rule out a no-deal departure from the EU, saying it would be “catastrophic” for employment, supermarket supply chains and farming.



a truck is parked in the water: Lorries queue on the route into Dover Port to board ferries to France on 11 December.


© Getty
Lorries queue on the route into Dover Port to board ferries to France on 11 December.

The food industry said it was “just bonkers” that UK businesses did not know what the trading conditions would be in 12 working days’ time.

Ian Wright, chief executive of the Food and Drink Federation, said the threat of tariffs “was not a trivial thing” and if the UK left the EU with a trade deal on 1 January consumers could expect to see price rises of between 5% and 15% in the supermarkets from mid-January.

“I know some of our members are planning to send out new portfolio price lists to their customers this week to take account of tariffs.

“Obviously

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Brexit trade deal talks deadline extended after ‘constructive’ call between Boris Johnson and Ursula von der Leyen



a person wearing a suit and tie: Boris Johnson and Ursula von der Leyen. Aaron Chown - WPA Pool/Getty Images


© Aaron Chown – WPA Pool/Getty Images
Boris Johnson and Ursula von der Leyen. Aaron Chown – WPA Pool/Getty Images

  • Brexit trade talks will be extended following a call between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen.
  • Both sides had insisted that the deadline for a breakthrough in talks was Sunday, with Johnson insisting a no-deal Brexit was “very likely.”
  • The extension comes as UK shops have been told to stockpile food and other essential items ahead of a possible no-deal outcome.
  • Visit Business Insider’s homepage for more stories.

Brexit trade deal talks will continue into the coming week following a call between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen on Sunday.

Ursula von der Leyen told reporters that talks with Johnson had been “constructive and useful” and so talks could continue.

“Despite the exhaustion after almost a

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Boris Johnson’s government has told UK shops to stockpile food with just hours to go until the no-deal Brexit deadline



Boris Johnson cooking in a kitchen preparing food: Getty


© Getty
Getty

  • UK supermarkets have been told to stockpile food and essential goods as Britain heads towards a no-deal Brexit.
  • Prime Minister Boris Johnson is due to talk with European Commission President Ursula von der Leyen on Sunday to decide whether their trade talks have a future.
  • Johnson said on Friday that it was “very, very likely” talks would fail.
  • British ports are already experiencing congestion and delays due to stockpiling ahead of a no-deal Brexit.
  • Visit Business Insider’s homepage for more stories.

Boris Johnson’s government has told UK supermarkets to start stockpiling food and other essential goods with just hours to go until the deadline for a Brexit trade deal with the EU.

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The UK Prime Minister is due to speak with European Commission President Ursula von der Leyen on Sunday when they will decide whether or not a deal is feasible before Britain is due

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Nerves In The City At Prospect Of A ‘No-deal’ Brexit

Britain’s financial sector is watching nervously as the prospect mounts of a “no-deal” Brexit, stoking fears of lost clients and influence in key areas, as well as market turbulence.

The Bank of England, where most risk is centred, is bracing for the end of the transition period on December 31, with no sign of a free-trade agreement between the European Union and Britain.

The central bank said a “no-deal” result could lead to “some market volatility and disruption for financial services, particularly to EU-based clients”.

Investment bank Morgan Stanley is predicting a 6-10 percent fall in the FTSE-250 index and a 10-20 percent drop in banking stocks, which have already been hit by the coronavirus.

From January 1, Britain’s financial sector and the City of London financial district will lose a European “passport” that allows it to sell products and financial services across the EU.

“The City” is also worried

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