Euro supported by ECB comments, sterling falls further

Dollar weakness and hawkish ECB comments supported the euro, while the pound under performed. Emerging market currencies strengthened.

 

Dollar weakness and hawkish ECB comments supported the euro, while the pound under performed. Emerging market currencies strengthened.

 

UK 2yr yields fell to 1.69%, pricing in more rate cuts from the BoE in the new year. UK 3-month Libor settled at 3.19% on Friday, down 19bps on the week.

 

The yield on the US 3-month T-bill briefly fell into negative territory as participants rushed to save haven assets. The fate of US car markers overshadowed equity markets.

 

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