Deal to Avert Brexit Gives Modest Boost to Euro, Pound

by Naharnet Newsdesk 20 February 2016, 10:02

The euro pushed higher against the dollar Friday as European leaders reached a deal that could keep Britain in the European Union, avoiding a much-feared "Brexit."

Early in the day the dollar was ahead, after U.S. consumer price data for January signaled a pickup in inflation that would support the Federal Reserve sticking to its plan to tighten monetary policy with higher interest rates over this year.

But as confidence in a deal between London and other EU leaders emerged, the euro turned course to end the day higher at $1.1131.

The pound also got a modest boost to $1.4392, once it became clear that the deal was in the works.

The deal still has to be sold to the British public by Prime Minister David Cameron, who faces a referendum on it possibly in June.

"This is enough for me to recommend that Britain remain in the European Union," Cameron told a press conference as a summit of the 28 EU leaders broke up.

Meanwhile, the yen showed more strength rising to 112.62 per dollar and 125.36 per euro.

Analysts tied some of the yen's strength to another fall in crude prices, as doubts increased over the tentative deal to control output between OPEC producers and Russia.

2200 GMT Friday Thursday

EUR/USD 1.1131 1.1105

EUR/JPY 125.36 125.76

EUR/CHF 1.1018 1.1030

EUR/GBP 0.7735 0.7746

USD/JPY 112.62 113.24

USD/CHF 0.9898 0.9933

GBP/USD 1.4392 1.4335

Source: Agence France Presse

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