The US dollar came under pressure after news that Senate Majority Leader Mitch McConnell blocked a stimulus vote which would have supplied $2,000 relief payments. Analysts say that market players do believe a deal for a final 2020 stimulus package will be signed, which shifted demand away from safe haven currencies, including the greenback. With the Trump administration having only about three weeks left, most economists expect that the incoming Biden administration will provide significant support which will bolster the US economy, further weakening the dollar.
In London trade as of 10:53 am, the EUR/USD was trading at $1.2277, a gain of 0.2212% and sliding away from the session peak of $1.22953. The GBP/USD was also higher at $1.3603, up 0.7592%; the pair has ranged from a low of $1.34867 to a peak of $1.36051 in today's session. The USD/JPY was lower at 103.1510 yen, down 0.37% and off the session low of 103.110 yen.
In the UK, the pound sterling made some headway against the greenback on news that Britain approved yet another vaccine to combat COVID-19, in a joint collaboration between Oxford University and AstraZeneca. Though a Brexit deal was signed before Christmas, analysts say that it lacks a plan for the services sector, a major component of the economy in the UK. Currency strategists say that in the longer term, sterling is likely to be under some pressure from the growing movement for an independent Scotland.