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Exchange Rates Daily Today 16 12 2020: Pound Higher On UK Fishing Concession Rumours, Euro-Dollar Choppy

The GBP/USD spot rate at time of writing: +0.53% at $1.35183 on 16.12.2020. Find out how to secure the best exchange rates on your money transfers here Pound Sterling (GBP) Exchange Rates The Pound to Dollar exchange rate (GBP/USD) rose strongly on Tuesday, as foreign exchange investors backed Sterling as high as 1.3461. Helping fuel the upside were rumors in Parliament that a trade deal was in the offing. Unlocking the deadlock, a U.K. concession over fishing vessels appears to have given the deal momentum to get to the finish line. Such good news should probably have pushed the Pound Sterling (GBP) a bit higher, and likely suggests that some kind of deal may already be in the price (and not just optimism.) This is a rather gloomy prospect for bulls, but with London undergoing strict restrictions again, it s not particularly surprising to see Cable’s gains capped.

Pound-Yen Rate Climbs Despite Japanese Currency s Resilience Against Other Currencies

While the Japanese Yen (JPY) exchange rates have been fairly resilient compared to other safe haven currencies, it is still falling against the Pound Sterling (GBP) this week as the British Pound to Japanese Yen (GBP/JPY) exchange rate sees a big rebound in demand. As there could be a Brexit deal any day now, the Pound is likely to keep seeing sudden sharp movements as volatility will persist until an outcome is clearer. Last week’s rise in no-deal Brexit fears knocked GBP/JPY from 139.98 to 137.57 throughout the week, meaning the pair lost a considerable two Yen. This week so far though, returning Brexit deal hopes have helped GBP/JPY to recover most of those weekly losses.

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