In the News

Euro, sterling rise on hopes for Brexit deal

(CNBC) The euro and sterling rose on Wednesday, underpinned by optimism for a Brexit deal, while the dollar lost ground against a basket of currencies even as U.S. bond yields hovered at multiyear peaks.

“We see a lot of volatility, so the good news may be a temporary thing because the EU has been quick to reject most proposals even if it has the backing of Labour,” said Juan Perez, senior currency trader with Monex, Inc. in Washington.

Perez was referring to the U.K. Labour Party whose spokesman on Wednesday downplayed a news report that some party members would back a Brexit deal that Prime Minister Theresa May supports. The bounce in the two currencies offset the effects of an increase in U.S. Treasury yields, putting pressure on the dollar.

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