Blog


06/01/2021 – This Morning’s Exchange Rates

  • Posted by currencies in Rate Alerts
  • January 6, 2021
  • No Comments

The exchange rates are listed at the bottom of this article. Please note they are for indication only. For live prices please contact us.

Sterling edged higher for a second consecutive session as the U.S. dollar weakened after Democrats took the lead in runoff votes that will determine control of the U.S. Senate.

Market watchers believe a Democrat-controlled Senate would help economic growth globally and thus riskier assets but drag down bonds and the dollar as the U.S. budget and trade deficits would be likely to grow.

With the market’s medium to long-term view still pointing towards the `back to normal’ trade, downside on the pound should be limited, especially as positioning is very neutral.

For now, though, markets remain cautious on the pound’s outlook.

The expected damage to the economy from a new national lockdown announced this week raised expectations the Bank of England will announce more policy easing.

Money markets now expect the central bank to take benchmark interest rates into negative territory as early as May, compared with an August estimate just after the Brexit deal was struck.

And while bullish pound bets have registered a fourth consecutive week of gains, according to weekly positioning data the size of the gains in the latest week is far smaller than in previous weeks.

The U.S. dollar slipped on Wednesday as Democrats took the lead in runoff votes that will determine control of the U.S. Senate and possibly pave the way for a big spending administration under President-elect Joe Biden.

A Democratic-led government is expected to add more stimulus to help mitigate the virus crisis and… that means that there is going to be a weaker dollar.

GBP/EUR 1.1047 GBP/USD 1.3629 GBP/AED 4.998

GBP/AUD 1.7477 GBP/CHF 1.1947 GBP/CAD 1.7264

GBP/NZD 1.8684 EUR/USD 1.2325 GBP/ZAR 20.395

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Currency Cloud Limited, Equals Connect Limited and Ebury Partners UK Limited. Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number: 900199. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Currencies 4 You Ltd is partnered with Ebury Partners UK Limited as its Programme Mananger. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the information commissioners office with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers