Dollar hits 7-week low, British pound jumps near 1%
Dollar index hits seven-week low with COVID stimulus in focus
The dollar hit a seven-week low against a basket of currencies on Wednesday after U.S. President Donald Trump and House Speaker Nancy Pelosi boosted hopes for a large fiscal stimulus package, prompting some traders to ramp up bets on riskier currencies.
The U.S. dollar index was 0.47% lower at 92.605, its lowest since Sept. 2.
The weakness in the greenback came as the White House and Democrats in the U.S. Congress moved closer to agreement on a new coronavirus-related aid package on Tuesday as Trump said he was willing to accept a large aid bill despite opposition within his own Republican Party.
British pound jumps as EU’s top Brexit negotiator says a trade deal is within reach
Sterling jumped more than 0.8% against the U.S. dollar on Wednesday after the EU signaled that a trade deal with the U.K. is still possible.
“Despite the difficulties we’ve faced, an agreement is within reach if both sides are willing to work constructively, if both sides are willing to compromise and if we are able to make progress in the next few days on the basis of legal texts and if we are ready over the next few days to resolve the sticking points, the trickiest subjects,” the EU’s chief negotiator Michel Barnier told the European Parliament.
His comment provided traders with some optimism that a trade deal between the U.K. and the EU will be reached even though their negotiations have been stuck over the same three issues for months.
Reference: CNBC
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