Currencies Overview: GBP Rising and USD Under Threat Amid Hopes of a Near Brexit Deal

The British pound extended gains Thursday, December 24, amid expectations that an agreement related to Britain’s exit from the European Union is imminent after a long period of being considered difficult to achieve, which raises hopes that Britain will be able to avoid an economic disruption with the beginning of the new year.

US dollar is threatened in light of lacklustre dealings due to a holiday, as demand for safer assets is declining due to hopes for an agreement that would protect trade between Britain and the European Union by about a trillion dollars annually in customs duties and setting quotas.

The pound rose 0.4% to $ 1.3546 in Asian trading, after rising 0.9% in the previous session, ending a series of losses that lasted for three consecutive days. The dollar index reached 90.233, after dropping 0.3% on Wednesday.

The euro rose 0.1% to $ 1.22030, which adds to a 0.2% gain overnight.

The yen, another safe-haven currency, was little changed, as it stood at 103.56 per dollar. The Australian dollar was trading with the highest risk at 75.797 US cents, after a 0.8% jump in the previous session.

Against the Chinese yuan, the US currency fell 0.1% to 6.5204 Chinese yuan in foreign trade. Domestically, the yuan traded at 6.5325 per dollar.