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FOREX-Dollar dips as markets price for Biden victory, Trump touts some stimulus

    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E

 (Adds details, updates prices; previous LONDON)
    By Karen Brettell
    NEW YORK, Oct 7 (Reuters) - The dollar dipped on Wednesday as investors looked ahead to a possible
Democrat victory at the November 3 U.S. Presidential election, and after U.S. President Donald Trump said
that he was ready to sign off on some stimulus measures.
    Election polls are showing a widening lead for Democratic presidential candidate Joe Biden, while some
betting markets are also reflecting the prospect of Democrats taking control of the U.S. Senate next
month.
    “FX markets are starting to, at the margin, price in not only a Biden presidency but also a blue sweep
as well,” said Mazen Issa, senior FX strategist at TD Securities in New York.
    Investors have been building short bets on the U.S. dollar index on the growing likelihood of a
Democrat victory, Issa said. "The market is looking at it as being reflationary.”
    A Democratic sweep would make larger fiscal stimulus more likely, which would weaken the U.S.
currency.
    Biden opened his widest lead in a month in the U.S. presidential vote, according to a Reuters/Ipsos
poll released on Sunday.
    The greenback also dipped after Trump said late on Tuesday that Congress should quickly extend $25
billion in new payroll assistance to U.S. passenger airlines furloughing thousands of workers as air
travel remains down sharply amid the coronavirus pandemic.
    It came after he abruptly ended talks with Democrats on an economic aid package, accusing House of
Representatives Speaker Nancy Pelosi of not negotiating in good faith.
    That sent stock markets tumbling on Tuesday afternoon and boosted demand for the dollar.
    The dollar index, tracking the unit against a basket of major currencies, fell 0.19% on
Wednesday to 93.64. It reached a two-week low of 93.33 on Tuesday, before Trump's comments.
    The greenback gained 0.25% against the safe haven Japanese yen to 105.88 yen. 
    The euro rose 0.32% to $1.1771 as dollar weakness overcame data showing that German industrial
output edged down in August following three months of relatively strong increases, suggesting the recovery
in Europe's largest economy from the coronavirus shock was starting to lose steam.
    The Federal Reserve will release minutes from its September meeting on Wednesday. Fed Chair Jerome
Powell said on Tuesday that the U.S. economic recovery remained far from complete and could still slip
into a downward spiral if the coronavirus is not effectively controlled and growth sustained.
    
    ========================================================
    Currency bid prices at 9:28AM (1328 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1771        $1.1734     +0.32%         +5.00%      +1.1782     +1.1726
 Dollar/Yen       JPY=        105.8800       105.6200    +0.25%         -2.74%      +106.1000   +105.6100
 Euro/Yen         EURJPY=     124.64         123.93      +0.57%         +2.21%      +124.8700   +123.8700
 Dollar/Swiss     CHF=        0.9160         0.9177      -0.19%         -5.35%      +0.9184     +0.9160
 Sterling/Dollar  GBP=        1.2872         1.2877      -0.04%         -2.92%      +1.2929     +1.2847
 Dollar/Canadian  CAD=        1.3281         1.3307      -0.20%         +2.27%      +1.3340     +1.3269
 Australian/Doll  AUD=        0.7140         0.7104      +0.51%         +1.69%      +0.7146     +0.7097
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0786         1.0769      +0.16%         -0.61%      +1.0796     +1.0768
 Euro/Sterling    EURGBP=     0.9144         0.9111      +0.36%         +8.16%      +0.9160     +0.9095
 NZ               NZD=        0.6596         0.6586      +0.15%         -2.08%      +0.6600     +0.6576
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.2938         9.3634      -0.74%         +5.87%      +9.3824     +9.2744
 Euro/Norway      EURNOK=     10.9423        10.9900     -0.43%         +11.23%     +11.0091    +10.9186
 Dollar/Sweden    SEK=        8.8966         8.9271      -0.35%         -4.82%      +8.9683     +8.8898
 Euro/Sweden      EURSEK=     10.4750        10.5116     -0.35%         +0.06%      +10.5230    +10.4685
 
    

 (Editing by Bernadette Baum)
  
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