Latest News

Irish News

Click Here to read Irish News

Forex News

Click Here to read Forex News

Market News

Click Here to read Market News

Irish News
/fxcentre/i-want-to/read-news
FOREX-Dollar skids; euro tops $1.18 after German sentiment survey
Published at 11/08/2020 at 19:02

* German ZEW economic survey boosts euro amid thin liquidity

* Fiscal stalemate, China tensions help put floor on dollar

* Dollar hits three-week high vs yen

* Oil currencies flourish as oil prices rise

* Graphic: World FX rates in 2020

(Adds new comment, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, Aug 11 (Reuters) - The dollar fell from one-week highs and the euro topped $1.18 on Tuesday as investors flocked to currencies that benefit from an improving global market outlook, with the S&P 500 nearing a record high and investor sentiment in Germany rising more than expected.

Aside from the euro, sterling and commodity-linked currencies such as the Australian and Canadian dollars, as well as the Norwegian crown, gained against a broadly weakening dollar.

"Europe's political and economic situation in terms of dealing with the pandemic has become far more stable than that of the United States," said Juan Perez, senior currency trader at Tempus Inc. in Washington.

"No matter how gradual the recovery may seem in the U.S. and even though the economic indicators may be positive, the reality is that the United States has not handled COVID well and the economic shutdown has created an uncertainty difficult to move away from," he added.

In early afternoon trading, the dollar index was down 0.1% at 93.503, sliding from a one-week high hit earlier in the session.

The euro rose after the ZEW survey of economic sentiment rose to 71.5 from 59.3 the previous month, far exceeding a forecast for 58.0 in a Reuters poll of economists.

As a result, euro/dollar hit a high of $1.1809 . The move was exacerbated by thin August liquidity, said Jane Foley, senior currency analyst at Rabobank, and she was "suspicious" about how much effect the ZEW survey had.

The euro was last up 0.2% at $1.1763.

"We need to wait 'til September to see clear direction coming from euro/dollar," Foley said.

The U.S. dollar has held a floor, despite losses, amid U.S.-China tensions and a stalemate between Congress and the Trump administration over fiscal stimulus.

The U.S. currency, however, hit a three-week highs against the yen , as U.S. 10-year Treasury yields rose to four-week peaks .

Congressional leaders and administration officials said on Monday they were ready to resume negotiations on a coronavirus aid deal. It was unclear whether they could bridge their differences.

Meanwhile, China imposed sanctions on 11 U.S. citizens, including Republican lawmakers, following Washington's sanctions on Hong Kong and Chinese officials.

U.S. Treasury Secretary Steven Mnuchin said companies from China and other countries that do not comply with accounting standards will be delisted from U.S. stock exchanges as of the end of 2021.

Market response to the U.S.-China conflict has been limited, but analysts say there could be longer-term implications.

Sterling traded up 0.1% at $1.3088 after Bank of England Deputy Governor Dave Ramsden said the central bank will step up quantitative easing if the British economy struggles again.

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

Currency bid prices at 1:50 PM (1750 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.1760 $1.1736 +0.20% +4.91% +1.1807 +1.1723

Dollar/Yen JPY= 106.5600 105.9500 +0.58% -2.11% +106.5900 +105.9300

Euro/Yen EURJPY= 125.33 124.36 +0.78% +2.77% +125.5000 +124.3600

Dollar/Swiss CHF= 0.9156 0.9156 +0.00% -5.39% +0.9168 +0.9106

Sterling/Dollar GBP= 1.3087 1.3070 +0.13% -1.29% +1.3131 +1.3057

Dollar/Canadian CAD= 1.3276 1.3350 -0.55% +2.23% +1.3361 +1.3270

Australian/Doll AUD= 0.7160 0.7149 +0.15% +1.98% +0.7189 +0.7146

ar

Euro/Swiss EURCHF= 1.0771 1.0746 +0.23% -0.75% +1.0791 +1.0736

Euro/Sterling EURGBP= 0.8985 0.8977 +0.09% +6.28% +0.9010 +0.8970

NZ NZD= 0.6587 0.6589 -0.03% -2.21% +0.6626 +0.6572

Dollar/Dollar

Dollar/Norway NOK= 8.9810 9.0354 -0.60% +2.31% +9.0524 +8.9323

Euro/Norway EURNOK= 10.5658 10.6020 -0.34% +7.40% +10.6745 +10.5420

Dollar/Sweden SEK= 8.7373 8.7493 -0.05% -6.53% +8.7731 +8.7048

Euro/Sweden EURSEK= 10.2764 10.2812 -0.05% -1.84% +10.3038 +10.2669

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Eurodollar

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

(Reporting by Gertrude Chavez-Dreyfuss Editing by Dan Grebler and Cynthia Osterman)

((gertrude.chavez@thomsonreuters.com; 646-301-4124; Reuters Messaging: rm://gertrude.chavez.reuters.com@reuters.net))