Forex Today: Fresh Brexit risks pound GBP, Aussie hit by RBA; UK jobs next of note

Dhwani Mehta FXStreet

Here is what you need to know on Tuesday, December 17:

Fresh Brexit fears: UK press reported overnight that PM Johnson will set a new deadline to prevent any extension of the Brexit transition period beyond 2020. Hard Brexit fears resurfaced thereafter and pounded the Sterling. GBP/USD quickly eroded nearly 100-pips and fell sharply below 1.3300. Heading into Europe, Cable reverses half the slide and looks to regain 1.3300. Meanwhile, Johnson is considering a big overhaul of the House of Lords, FT reported. Focus on UK Employment data and BOE Governor Carney’s speech ahead.

Trade deal skepticism: US-China Phase One trade deal optimism faded, despite assurances from the White House that deal with China is done. The skepticism is mainly in light of Beijing's reticence in acknowledging specifics laid out by the US.

The US dollar was broadly bid, helped by the slump in GBP/USD. EUR/USD remained trapped below the 200-DMA at 1.1153. Meanwhile. USD/JPY traded modestly flat above 109.50. The Aussie was pressured to near 0.6860 region on dovish RBA’s December meeting’s minutes while the Kiwi benefited from a lift in New Zealand’s Business Confidence.

Among related markets, Asian stocks tracked the Wall Street rally while Treasury yields dropped over 1%. Gold kept its recent range around $ 1475 while both crude benchmarks traded little changed near three-month tops ahead of API weekly Crude Stocks data.

Cryptocurrencies consolidated the overnight slump, with Bitcoin licking its wounds sub-$ 6,900.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD remains stuck in tight range above 1.3600

GBP/USD extends its consolidation into a second consecutive day on Tuesday and fluctuates in a narrow band above 1.3600. The US Dollar stabilizes as investors assess US sanctions on Iran, while diplomatic efforts creep back amid reports that Pakistan is carrying an offer to Iran to halt the siege and lift sanctions under the Memorandum of Understanding.

EUR/USD stays below 1.1700 after weak US consumer confidence data

EUR/USD struggles to gather recovery momentum and trades below 1.1700 in the second half of the day on Tuesday. The US Dollar (USD) benefits from the cautious mood as investors assess the latest developments in the Middle East. Meanwhile, disappointing consumer sentiment data from the US helps the pair hold its ground.

Gold takes a breather after climbing to a fresh three-month high, US PCE in focus

Gold (XAU/USD) extends its intraday decline during American trading hours on Tuesday after setting a fresh three-month high of $4,697 earlier in the day.

Crypto Today: Bitcoin soars past $80K as Ethereum and XRP hold gains

Bitcoin (BTC) is trading above $80,000 on Tuesday. This is the highest level the Crypto King has traded since mid-May, underscoring a positive shift in investors' risk-on sentiment, liquidity conditions and the technical outlook.

Nvidia earnings: A quick look at expectations

The 2026 Q2 earnings season is nearly over for S&P 500 members, with the reporting cycle notably positive. But looming large this week is none other than AI-favorite NVIDIA (NVDA) , whose results will wrap up the reporting cycle for the Magnificent Seven group as well.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.