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FOREX-Dollar slips on report that U.S. stimulus talks to resume

Published 2020-11-19, 03:52 p/m
© Reuters.
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* U.S. stimulus talks to resume -CNBC, citing Schumer

* Euro getting above $1.1850 opens way for move higher -analyst

* Sterling falls on Brexit worries

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Recasts; adds new comment, Senator Schumer's news; updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, Nov 19 (Reuters) - The dollar slid for a sixth straight session on Thursday, after trading higher for most of the day, on reports that U.S. Senate Republican leaders have agreed to resume negotiations on another coronavirus stimulus package.

CNBC reported that top Senate Democrat Chuck Schumer said on Thursday that Republican Majority Leader Mitch McConnell has agreed to resume COVID-19 relief talks as cases surge across the country. report led to a bounce in stocks, pushed the euro to a session high versus the dollar, and pared losses in currencies that benefit from higher risk appetite such as the Australian dollar and the Norwegian crown.

Prior to the Nov. 3 U.S. election, financial markets had been riveted by the back-and-forth from lawmakers during the stimulus talks. In the end though, investors were resigned to the fact that any stimulus plan would be passed after President-elect Joe Biden takes office in January.

"The euro bottomed out against the dollar hours ago and technically when we got above $1.1850, the move higher accelerated," said Marc Chandler, chief market strategist at Bannockburn Forex.

"I think the market is relatively thin and when the Schumer news hit, it further opened the door. The market is still sensitive to news about the stimulus," he added.

In late afternoon trading, an index which tracks the dollar against a basket of currencies was down 0.2% at 92.299 =USD .

The dollar, though, remains caught in a tug-of-war between the upbeat outlook arising from positive vaccine news as well as the relentless rise in coronavirus infections that forced localized shutdowns around the world.

The surge in coronavirus cases is supposedly positive for the safe-haven dollar.

The U.S. death toll from COVID-19 surpassed 250,000 on Wednesday as New York City's public school system, the country's largest, halted in-person instruction, citing a jump in infection rates. euro rose 0.2% against the dollar to $1.1875 EUR=EBS .

With fiscal stimulus plans remaining uncertain, speculation is growing that the Federal Reserve may further loosen monetary policy in December.

Two Fed officials on Wednesday held out the option of doing more, and Treasuries have rallied in anticipation of a possible expansion of U.S. central bank bond-buying. dollar was little changed against the yen at 103.81 yen JPY=EBS . The yen has gained about 1.4% since Pfizer Inc (NYSE:PFE) PFE.N announced promising trial results for its COVID-19 vaccine.

The greenback showed little reaction after the Labor Department reported that U.S. weekly jobless claims increased to a seasonally-adjusted 742,000 for the week ended Nov. 14. Economists polled by Reuters had forecast 707,000 applications for the latest week. sterling dipped 0.2% to $1.3255 GBP=D3 against the dollar after the Times newspaper reported that European leaders will urge the European Commission to publish no-deal Brexit plans as the year-end deadline approaches. BTC=BTSP , meanwhile, rose 1.2% on Thursday to $18,004, not far from the all-time high of nearly $20,000 reached three years ago.

========================================================

Currency bid prices at 3:37PM (2037 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

92.2710

92.4740

-0.21%

+0.00%

+92.7270

+92.2660 Euro/Dollar

EUR=EBS

$1.1878

$1.1854

+0.22%

+5.96%

+1.1880

+1.1817 Dollar/Yen

JPY=D3

103.7950

103.8200

-0.04%

-4.45%

+104.2100 +103.7450 Euro/Yen

EURJPY=

123.28

123.05

+0.19%

+1.10%

+123.3200 +122.8500 Dollar/Swiss

CHF=EBS

0.9106

0.9112

-0.04%

-5.88%

+0.9139

+0.9106 Sterling/Dollar GBP=D3

1.3266

1.3268

-0.02%

+0.02%

+1.3268

+1.3198 Dollar/Canadian CAD=D3

1.3065

1.3085

-0.14%

+0.59%

+1.3122

+1.3060 Aussie/Dollar

AUD=D3

0.7294

0.7306

-0.14%

+3.97%

+0.7305

+0.7255 Euro/Swiss

EURCHF=

1.0815

1.0796

+0.18%

-0.34%

+1.0819

+1.0791 Euro/Sterling

EURGBP=

0.8951

0.8931

+0.22%

+5.88%

+0.8963

+0.8924 NZ

NZD=D3

0.6924

0.6923

-0.06%

+2.82%

+0.6925

+0.6879 Dollar/Dollar

Dollar/Norway

NOK=D3

8.9845

9.0045

+0.07%

+2.72%

+9.0920

+9.0105 Euro/Norway

EURNOK=

10.6761

10.6880

-0.11%

+8.52%

+10.7485

+10.6703 Dollar/Sweden

SEK=

8.5913

8.5980

+0.22%

-8.09%

+8.6569

+8.5877 Euro/Sweden

EURSEK=

10.2059

10.1835

+0.22%

-2.52%

+10.2345

+10.1787

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