Shock on the foreign exchange market! The dollar is losing ground against other major currencies. What happens to the pound sterling and the euro in the context of Brexit – News from sources

The dollar lost ground against the other major currencies on Monday, while the pound and the euro gained amid signs that Britain and the European Union could make progress in the post-Brexit trade deal negotiations, Reuters reports, according to Mediafax.

Market sentiment was mixed between fears of a second wave of a pandemic and hopes of a functional vaccine that could help bring back global growth.

Hopes for a Brexit compromise came after news broke that Dominic Cummings, Prime Minister Boris Johnson’s strongest adviser, was leaving Downing Street in mid-December.

Meanwhile, Britain’s top Brexit negotiator, David Frost, said on Sunday that Britain and the EU have made some progress in post-Brexit trade negotiations, but may not be able to reach an agreement.

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The pound rose more against the dollar at 1.3226, but also against the euro at 89.61 pence. The euro was up 0.16% against the dollar to 1.1854.

Global markets rose last week amid optimism that a COVID-19 vaccine will soon be available, with the dollar rising.

“The currency movements caused by the vaccine news have taken a pause. Without further positive news on the vaccine, US interest rates and stocks went into correction at the end of the week and the dollar / yen fell,” Masafumi Yamamoto said. , chief foreign exchange strategist at Mizuho Securities.

The markets are also affected by the evolution of the total number of virus cases in the United States, which on Sunday exceeded 11 million, with the acceleration of the pace of the pandemic, but also the outcome of the American elections. “Over the weekend, uncertainty over the US presidential election eased as it became more certain that Joe Biden garnered more votes and it is easier for traders to take risks in hopes that the next administration will act soon. Against the coronavirus.” Masafumi Yamamoto, a strategist at Mizuho Securities, said.

The dollar could strengthen against the yen if US bonds and equities continue their upward trend, he added.