Euro Settled Ahead of Expected Stimulus From ECB, Sterling Falling

The euro stabilized Thursday, December 10, before the European Central Bank unveiled new stimulus measures, while the British pound fell after trade talks on Brexit were extended until the next few days, seeking an elusive breakthrough.

European Central Bank officials have made clear in recent weeks that a larger program of pandemic emergency purchases and more long-term subsidized loans to banks would form the backbone of policy measures.

The euro was only slightly higher against the dollar, rising 0.04% to $ 1.2086.

But against the pound, the euro rose 0.7% to 90.80 pence, while the pound continued to suffer losses against the dollar, down to $ 1.3317.

The British currency fell overnight after British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen gave negotiators an ultimatum expiring within the next few days to decide whether a trade deal could be struck after they failed to close the differences themselves.

The Australian dollar rose 0.44% to $ 0.7450, approaching its highest level in two and a half years at $ 0.7485, which it reached on Wednesday, while the Chinese yuan in foreign trade hovered below its two and a half year high, which it hit on Wednesday, to trade at 6.5385 per dollar. The dollar rose 0.3% to 104.55 yen.