Both the GBP and the Eur moved higher after Britain and the EU extended discussions beyond yesterday’s deadline on Brexit. The EU’s Brexit negotiator, Michel Barnier, said a new pact with Britain was still possible as negotiators sought to break deadlocks on access to fishing waters for EU vessels and corporate economic fair-play rules. Markets took the news with some degree of optimism, however, they are not treating it “fait accompli”, and expect further disruptions in the near term.
The USDCAD is unchanged and has traded in a narrow range, with the arrival of vaccines both in Canada and the U.S., market expectations are starting to build but won’t be released until both respective countries have significant numbers of inoculations and Washington has announced its second stimulus plan.
Expect narrow range till stimulus plan is announced.
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