TOKYO (Reuters) – The dollar set aside news of President Trump giving in to the threat of blocking a COVID-19 aid bill in reduced negotiations on Monday with many holiday investors.
The pound was below the 2 1/2 year high in the Asian session following last week’s agreement on a narrow Brexit trade deal that does not cover the UK financial sector.
The dollar index fluctuated slightly, to 90,224, after a three-day slide.
The pound added 0.1% to $ 1.3544, treading water below the 2.6-year high of $ 1.3625 earlier this month.
Trump signed the $ 2.3 trillion pandemic aid and spending package law, officials said Sunday night, preventing a partial strike by the federal government.
Earlier, he had sent a cryptic tweet: “Good news about Covid Relief Bill. Information to follow!” He had previously demanded an increase in stimulus checks for Americans who had problems at $ 2,000, from $ 600.
The euro fell 0.1% to $ 1.2199, falling further from a two-and-a-half-year high of $ 1.2273 hit this month.
While last week’s Brexit deal was a relief for investors, the nature of the pact leaves Britain much more detached from the EU, analysts say, suggesting the discount chasing the UK’s assets. United since 2016 will not disappear soon.
Brussels has not yet made a decision on whether to grant Britain access to the blog’s financial market.
Mitsuo Imaizumi, chief FX strategist at Daiwa Securities in Tokyo, expects the pound and the euro to fall against the dollar, reaching $ 1.30 and $ 1.15 by the end of the summer, respectively.
“Regardless of the Brexit deal, the cable will not work,” he said.
“It’s buying the rumor, selling the fact.”
The dollar changed little, with 103.63 yen.
Political leaders at the Japanese power plant were divided on the extent to which they should examine the control of the yield curve and some called for a thorough review of the framework, a summary of views expressed in the review of the December rate.
Reports by Kevin Buckland; Edited by Stephen Coates