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FOREX-Yen rebound resumes, Aussie gains, as markets weigh risk from COVID-19 wave

Published 2020-11-13, 03:13 p/m
EUR/USD
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USD/JPY
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USD/CHF
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USD/SEK
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SOGN
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PFE
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DX
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* Yen recovers some of week's losses

* Dollar slips as vaccine rally peters out

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Updates prices)

By David Henry

NEW YORK, Nov 13 (Reuters) - The safe-haven Japanese yen and Swiss franc strengthened on Friday, as the threat of a new COVID-19 wave in the United States and Europe chilled the increased risk appetite that had been driven by promising vaccine news earlier this week.

At 104.615 yen, the dollar had lost 0.46% against the Japanese currency on Friday morning in New York. The yen dropped around 2% versus the dollar on Monday JPY=D3 . The Swiss franc CHF=EBS firmed to 0.9132 against the dollar, after trading at 0.9192 mid-week.

The dollar slipped 0.23% against a basket of currencies =USD .

Global markets surged on Monday after Pfizer Inc (NYSE:PFE) PFE.N said its experimental vaccine was more than 90% effective in trials. The news saw the dollar rise as traders quit their long-yen positions. currency market traders became more risk-averse on Thursday and Friday as infections spread and the heads of the Federal Reserve and the European Central Bank (ECB) stressed that the economic outlook remains uncertain. is tough to have a sustained run of optimism when virus cases continue to mount," said Joe Manimbo, senior market analyst at Western Union Business Solutions. "The market sees light at the end of the tunnel, but we're still in the tunnel."

Despite the pullback, the yen was on track for its worst week since June.

The euro was up 0.24% at $1.1832.

The prospect of a vaccine is a source of relief but the euro zone will still suffer as a result of new lockdown measures, two ECB policymakers also said. the Australian dollar - a liquid proxy for risk and global economic growth - picked up. It was up 0.44% on the day at 0.7265 versus the dollar.

"The prospect of the Fed staying super-easy through the winter and beyond, while vaccine optimism, builds is dollar bearish," Kit Juckes, an FX strategist at Societe Generale (PA:SOGN), wrote in a note.

"The big winners in the longer-run are the higher-beta, growth and trade-sensitive currencies," he said.

The New Zealand dollar was flat versus the dollar at 0.6840 NZD=D3 , but still up on the week after jumping to its highest since March 2019 after the Reserve Bank of New Zealand's meeting on Wednesday. health minister said on Friday that it was too early to say how long the latest lockdown would last, while the French prime minister said France's measures would not be eased for at least two weeks. President-elect Joe Biden won the battleground state of Arizona late on Thursday, but President Donald Trump still refuses to accept defeat. ========================================================

Currency bid prices at 2:50PM (1950 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

$92.7480

92.9680

-0.23%

+0.00%

+93.0070

+92.7340 Euro/Dollar

EUR=EBS

$1.1832

$1.1804

+0.24%

+5.54%

+1.1835

+1.1800 Dollar/Yen

JPY=D3

104.6150

105.1050

-0.46%

-3.68%

+105.1450 +104.6200 Euro/Yen

EURJPY=

123.77

124.11

-0.27%

+1.49%

+124.3000 +123.6700 Dollar/Swiss

CHF=EBS

0.9133

0.9152

-0.19%

-5.60%

+0.9159

+0.9127 Sterling/Dollar GBP=D3

1.3180

1.3124

+0.45%

-0.60%

+1.3191

+1.3112 Dollar/Canadian CAD=D3

1.3135

1.3145

-0.06%

+1.12%

+1.3171

+1.3116 Aussie/Dollar

AUD=D3

0.7265

0.7233

+0.44%

+3.53%

+0.7273

+0.7222 Euro/Swiss

EURCHF=

1.0807

1.0801

+0.06%

-0.41%

+1.0816

+1.0791 Euro/Sterling

EURGBP=

0.8976

0.9000

-0.27%

+6.17%

+0.9005

+0.8966 NZ

NZD=D3

0.6840

0.6839

+0.06%

+1.69%

+0.6847

+0.6811 Dollar/Dollar

Dollar/Norway

NOK=D3

9.1665

9.1755

-0.04%

+4.55%

+9.1895

+9.1400 Euro/Norway

EURNOK=

10.8480

10.8287

+0.18%

+10.27%

+10.8537

+10.8050 Dollar/Sweden

SEK=

8.6924

8.6413

+0.81%

-7.01%

+8.7071

+8.6200 Euro/Sweden

EURSEK=

10.2868

10.2040

+0.81%

-1.74%

+10.2925

+10.1988

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ USDJPY

https://tmsnrt.rs/3nf1O7r

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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