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FOREX-Dollar falls; euro tops $1.18 after sentiment survey
Published at 11/08/2020 at 15:48

* German ZEW economic survey boosts euro amid thin liquidity

* Fiscal stalemate, U.S.-Sino tensions breathe strength into dollar

* Oil currencies flourish as oil prices rise

* Graphic: World FX rates in 2020

(Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)

By Gertrude Chavez-Dreyfuss

NEW YORK, Aug 11 (Reuters) - The dollar slid 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.

"The greenback remains dogged by the narrative that other nations are better navigating the coronavirus pandemic," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

He also cited the standstill in Congress over an additional pandemic stimulus package, which "reinforces expectations of low growth and low lending rates for longer."

In late morning trading, the dollar index was down 0.2% at 93.454, 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 gained 0.5% to $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 0.3% at $1.1769.

"We need to wait till 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 dollar was last up 0.4% against the Japanese yen at 106.41 yen , as U.S. 10-year Treasury yields rose to four-week highs . The greenback earlier touched a one-week peak versus the yen.

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 0.2% at $1.3095 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 10:46AM (1446 GMT)

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

Previous Change


Euro/Dollar EUR= $1.1777 $1.1736 +0.35% +5.06% +1.1807 +1.1723

Dollar/Yen JPY= 106.4100 105.9500 +0.43% -2.25% +106.4400 +105.9300

Euro/Yen EURJPY= 125.34 124.36 +0.79% +2.78% +125.3500 +124.3600

Dollar/Swiss CHF= 0.9148 0.9156 -0.09% -5.48% +0.9168 +0.9106

Sterling/Dollar GBP= 1.3091 1.3070 +0.16% -1.25% +1.3131 +1.3057

Dollar/Canadian CAD= 1.3299 1.3350 -0.38% +2.39% +1.3361 +1.3270

Australian/Doll AUD= 0.7162 0.7149 +0.18% +2.01% +0.7189 +0.7146


Euro/Swiss EURCHF= 1.0774 1.0746 +0.26% -0.72% +1.0776 +1.0736

Euro/Sterling EURGBP= 0.8995 0.8977 +0.20% +6.39% +0.9010 +0.8970

NZ NZD= 0.6592 0.6589 +0.05% -2.14% +0.6626 +0.6586


Dollar/Norway NOK= 8.9811 9.0354 -0.60% +2.30% +9.0524 +8.9323

Euro/Norway EURNOK= 10.5793 10.6020 -0.21% +7.52% +10.6745 +10.5420

Dollar/Sweden SEK= 8.7454 8.7493 +0.21% -6.45% +8.7731 +8.7048

Euro/Sweden EURSEK= 10.3033 10.2812 +0.21% -1.58% +10.3038 +10.2669

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


(Reporting by Gertrude Chavez-Dreyfuss and Olga Cotaga; Editing by Larry King, Bernadette Baum and Dan Grebler)