UK Preliminary Quarterly GDP is out on Thursday at 09:00 MT time.
UK pound edges up on hopes for Brexit deal
On Tuesday, the Japanese yen went down on news that a Japanese chip manufacturer was purchasing an American rival for about $6.7 billion. Meanwhile, the UK pound held onto overnight profits right after the EU’s key negotiator backed expectations that a Brexit deal can be reached in the nearer weeks.
Eventually, most other key currencies were in tight ranges because market participants waited for further developments in international trade clashes, in particular on any American move to impose fresh levies on China in the face of heightened tension between the two leading economies.
On Tuesday, the UK currency jumped by 0.1% hitting $1.3041.
Market experts stress that if the talks for Brexit conclude on a positive note, it will definitely underpin the British pound.
The common currency was nearly intact, sticking with $1.1601. It rallied nearly 0.4% during the previous trading session, backed by an easing in worries over Italian debt.
Versus the UK currency, the euro hit 88.94 pence, having dived to a fresh one-month minimum of 88.91.
Policymakers at the BoE as well as ECB are generally anticipated to leave their policy settings intact at their respective gatherings on Thursday.
Tracking the greenback’s purchasing potential versus its primary counterparts the USD index stood still at 95.140, having lost 0.2% overnight.
News that Japan’s chip manufacturer Renesas was purchasing its American rival Integrated Device Technology for up to $6.7 billion put pressure on the Japanese yen.
The evergreen buck jumped by 0.3% hitting 111.41 yen due to the fact that market participants also cut some of their safe-haven holdings of the Japanese yen because the benchmark Nikkei 225 stock index tacked on by over 1% and also on expectations for a Brexit deal.
Additionally, the Australian dollar soared by 0.15% reaching $0.7123.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.