The pound fell against the dollar and euro on Friday after the UK Purchasing Managers' Index (PMI) fell to a four-month low, but was still set to end the week up, after a new phase of intense Brexit talks restarted.
A dearth of action in fixed income markets is prompting bond investors to focus more on currencies to spot market trends, marking a turning point for the gigantic but generally murky foreign exchange markets.
The dollar held gains against a basket of major currencies on Thursday as escalating coronavirus cases in Europe stoked fears across markets that fresh lockdowns would further hit the already fragile economic recovery.
Equity and currency volatility shot higher on Wednesday and the cost of sourcing dollars rose, reflecting fears that the U.S. election and resurgent COVID-19 pandemic could tip markets back into the sort of chaos endured earlier this year.
The dollar weakened slightly against a basket of major currencies on Friday amid uncertainty over a new round of stimulus ahead of the upcoming U.S. elections, with the greenback set to record a weekly decline of around 1%.
Sterling jumped as much as 0.3% versus the dollar on Friday after signs of progress in one of the key sticking points in Brexit negotiations: fisheries.
The dollar index ticked higher on Thursday, easing off a seven-week low as hopes for a coronavirus aid package ahead of the U.S. elections faded and COVID-19 cases surged around the world, giving a slight bid to safe-haven assets like the greenback.
The pound fell versus the dollar on Thursday, but was steady against the euro, stabilising after cable surged to six week highs in the previous session on news that Brexit talks were restarting.
The dollar hit a seven-week low against a basket of currencies on Wednesday after U.S. President Donald Trump and House Speaker Nancy Pelosi boosted hopes for a large fiscal stimulus package, prompting some traders to ramp up bets on riskier currencies.
Sterling soared on Wednesday to a six-week high and 1.7% on the day against the U.S. dollar after a Bloomberg report that Brexit negotiations were due to start again after halting abruptly last week.
The U.S. dollar dipped on Tuesday, hitting a one-month low against a basket of major currencies, as investors awaited the outcome of fiscal stimulus talks ahead of the upcoming U.S. presidential election and coronavirus cases spiked in Europe.
Sterling rose against the dollar but fell versus the strong euro on Tuesday, with investors still searching for clues on how likely it was that Britain would reach a trade deal with the European Union by the end of the year.
The dollar edged lower on Monday as investors were cautiously optimistic that an agreement in Washington on a fiscal stimulus package could be reached ahead of the Nov. 3 U.S. election, and that a coronavirus vaccine will be ready by year-end.
The British pound extended gains and climbed above $1.30 on Monday as hopes grew that British and European negotiators might be able to salvage post-Brexit trade talks.
The dollar edged lower against a basket of currencies on Friday, paring some of the week's gains built on increased caution over a global surge in coronavirus cases and fading prospects for a U.S. stimulus package before the Nov. 3 election.
Sterling largely brushed off the British Prime Minister's announcement that it was time to prepare for a no-trade deal Brexit on Friday, as analysts said the majority of market participants still expect a deal will be reached.
The dollar climbed on Thursday along with the safe-haven yen as signs the U.S. economy was stalling while fiscal stimulus appeared unlikely before the U.S. presidential election kept investors in a risk-off stance.
Sterling weakened sharply on Thursday, sent lower by concerns about the obstacles keeping the European Union and Britain from reaching a Brexit trade deal, and a broadly stronger dollar added to the pound's woes.
The dollar index retreated on Wednesday, a day after notching its biggest daily percentage gain in three weeks, and the euro hit its lowest level in a week as global equity markets remained cautious on waning hopes a COVID-19 vaccine or U.S. fiscal stimulus was on the horizon...
Sterling climbed nearly 1% on Wednesday after Britain and the European Union said they had made "some progress" in trade talks this week.
The U.S. dollar strengthened on Tuesday as investors turned cautious after a Johnson & Johnson COVID-19 study was paused and as hopes dimmed that a fiscal stimulus package could be reached before the presidential election.
Sterling sank on Tuesday, dipping against a broadly stronger dollar as investors kept an eye on ongoing Brexit negotiations for fresh drivers for a currency that has hovered below the $1.30 mark since September.
The dollar index was little changed near three-week lows on Monday as optimism over the possibility of a COVID-19 relief bill was curbed by concern over the pandemic, while China's yuan fell after the People's Bank of China (PBOC) changed its reserve requirements policy.
Sterling edged higher on Monday as hopes for a Brexit deal kept the currency above the key $1.30 level, after British Prime Minister Boris Johnson announced new coronavirus restrictions.