Finally, after months of gridlock, the European Union and the United Kingdom clinched a historic accord on Wednesday. It is rumoured that a breakthrough was possible thanks to Boris Johnson’s capitulation on crucial issues.
The pound enjoys the strongest rally in weeks. The cable rises towards the 1.36 mark and EUR/GBP declines below 0.90. At the same time, EUR/USD hovers a tad above 1.22, which means the common currency gained almost 9% against the greenback this year and was among the top G-10 performers with the Swedish krona and the Swiss franc. The U.S. dollar is set to experience a yearly decline against all major currencies.
In the EM space, the Czech koruna, the Korean won and the Polish zloty stood out while the likes of the Brazilian real, the Turkish lira and the Russian ruble underperformed and were unable to recover massive sell-off despite a recent rally triggered by the vaccine breakthrough.
Conotoxia research team