December 26, 2018 / 2:47 PM / 3 months ago

FOREX-Dollar gains as stocks rebound off lows

    * Dollar index up 0.2 pct but still off Dec. 14 high
    * US government shutdown, Fed rate concerns weigh

    By Karen Brettell
    NEW YORK, Dec 26 (Reuters) - The dollar gained against the
euro on Wednesday as U.S. stocks came off 20-month lows, though
uncertainty relating to the U.S. government shutdown and Federal
Reserve monetary policy remained a headwind for the greenback.
    Wall Street opened higher after a few punishing sessions
that left the S&P 500 on the brink of bear market territory on
worries over slowing growth and the drama in the White House.

    "There is a modest sense of temporary stability returning to
equity markets," Nick Bennenbroek, a currency strategist at
Wells Fargo in New York said in a report.
    "That said, trading conditions remain light and investors
remain somewhat cautious, watching closely for more U.S.
political headlines," Bennenbroek said. 
    On Tuesday, U.S. President Donald Trump said the partial
shutdown of the federal government was going to last until his
demand for funds to build a wall on the U.S.-Mexico border is
met.
    Trump also expressed confidence in Treasury Secretary Steven
Mnuchin, but repeated his criticism that the Fed has raised
interest rates too quickly. The dollar has been hit in recent
weeks by investor fears that rate hikes will hurt the U.S.
economy as international growth sputters.
    “There's an endless laundry list of concerns: Trump berating
the Fed, Trade Wars, China slowing growth, Brexit casualties, EU
slowdown. But when you factor in a downturn in the U.S. economy,
this is when things get ugly,” Stephen Innes, head of trading
APAC at Oanda in Singapore said in a note.
    The dollar index against a basket of six major currencies
 gained 0.20 percent to 96.747. It was down from a
1-1/2-year high of 97.711 on Dec. 14.
    Liquidity was thin after major markets were closed on
Tuesday for the Christmas holiday. Markets in Britain, Germany
and France remained closed on Wednesday.
    ========================================================
    Currency bid prices at 9:26AM (1426 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1389        $1.1361     +0.25%         -5.06%      +1.1421     +1.1351
 Dollar/Yen       JPY=        110.5600       110.2700    +0.26%         -1.87%      +110.7000   +110.1500
 Euro/Yen         EURJPY=     125.96         125.67      +0.23%         -6.82%      +126.2200   +125.6600
 Dollar/Swiss     CHF=        0.9913         0.9836      +0.78%         +1.74%      +0.9919     +0.9853
 Sterling/Dollar  GBP=        1.2680         1.2684      -0.03%         -6.16%      +1.2719     +1.2669
 Dollar/Canadian  CAD=        1.3609         1.3588      +0.15%         +8.21%      +1.3617     +1.3580
 Australian/Doll  AUD=        0.7059         0.7037      +0.31%         -9.51%      +0.7060     +0.7033
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1292         1.1257      +0.31%         -3.38%      +1.1295     +1.1246
 Euro/Sterling    EURGBP=     0.8981         0.8980      +0.01%         +1.10%      +0.9000     +0.8968
 NZ               NZD=        0.6729         0.6724      +0.07%         -5.02%      +0.6740     +0.6721
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.8070         8.7699      +0.42%         +7.30%      +8.8246     +8.7372
 Euro/Norway      EURNOK=     10.0310        9.9771      +0.54%         +1.85%      +10.0476    +9.9669
 Dollar/Sweden    SEK=        9.0681         9.0533      +0.13%         +10.56%     +9.0804     +9.0404
 Euro/Sweden      EURSEK=     10.3290        10.3151     +0.13%         +4.98%      +10.3431    +10.3108
 
 (Editing by David Gregorio)
  
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