June 12, 2020 / 3:27 PM / 22 days ago

FOREX-Dollar rises vs yen, franc; risky currencies rally as traders stop taking profits

    * Investors focus on key events next week: Brexit, cenbank meetings
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Recasts, adds new comment, U.S. data, FX table; updates prices; changes byline, dateline; previous
LONDON)
    By Chuck Mikolajczak
    NEW YORK, June 12 (Reuters) - The U.S. dollar rose against the safe-haven Japanese yen and Swiss franc
on Friday as stocks on Wall Street bounced from their worst one-day performance in three months, while the
euro edged lower against the greenback, erasing early gains. 
    The yen was weaker against the dollar for the first time in five sessions, while the Swiss franc
declined as Wall Street rallied to claw back some of the sharp losses suffered in the prior session. 
    "What we have to take into consideration is what was the big move yesterday – you did see the flight
to safety and when that happens, it is all about the Japanese yen and the Swiss franc and today they are
giving back their gains," said Edward Moya, senior market analyst at OANDA in New York.
    "We love to talk about the dollar, but right now it's all about the yen and franc giving back their
gains as Wall Street rebounds following that big sell-off." 
    Hopes of a post-COVID global recovery, the easing of U.S.-China trade tensions and the prospect of
capped long-term yields in the United States had weighed on the U.S. dollar, pushing it lower against most
major currencies, before it strengthened.
    The euro fell 0.3% to $1.1266, staying close to $1.1422, the three-month high it reached on
Wednesday. 
    The dollar was up against the yen, last trading up 0.4% to 107.325 and up 0.7% against the
franc at 0.9511. 
    Investors were also bracing for a number of key events in the next few days, including discussions on
the European Union recovery fund, Brexit negotiations, Bank of England and Swedish National Bank meetings
and Federal Reserve Chair Jerome Powell’s semi-annual testimony to the Senate banking committee.
    The British pound weakened on data showing Britain's economy shrank by a record 20.4% in April from
March as the country spent the month in a tight coronavirus lockdown. Investors saw the number as likely
the bottom of the crash before what is expected to be a long and slow recovery.
    Sterling was last down 0.37% at $1.2551 and was flat versus the euro at 89.64 pence
.
    The dollar showed little reaction to U.S. economic data on import prices and consumer sentiment
released on Friday.
    ========================================================
    Currency bid prices at 10:40AM (1440 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1266        $1.1297     -0.27%         +0.50%      +1.1340     +1.1268
 Dollar/Yen       JPY=        107.3400       106.8500    +0.46%         -1.40%      +107.5400   +106.6000
 Euro/Yen         EURJPY=     120.95         120.73      +0.18%         -0.82%      +121.8000   +120.2700
 Dollar/Swiss     CHF=        0.9497         0.9440      +0.60%         -1.87%      +0.9499     +0.9437
 Sterling/Dollar  GBP=        1.2553         1.2600      -0.37%         -5.32%      +1.2653     +1.2546
 Dollar/Canadian  CAD=        1.3583         1.3624      -0.30%         +4.60%      +1.3666     +1.3527
 Australian/Doll  AUD=        0.6854         0.6854      +0.00%         -2.38%      +0.6911     +0.6800
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0702         1.0666      +0.34%         -1.38%      +1.0727     +1.0656
 Euro/Sterling    EURGBP=     0.8973         0.8964      +0.10%         +6.14%      +0.8992     +0.8948
 NZ               NZD=        0.6432         0.6430      +0.03%         -4.51%      +0.6477     +0.6395
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.6263         9.6200      +0.07%         +9.66%      +9.6950     +9.5103
 Euro/Norway      EURNOK=     10.8465        10.8700     -0.22%         +10.25%     +10.9335    +10.7814
 Dollar/Sweden    SEK=        9.3353         9.3179      -0.10%         -0.13%      +9.3555     +9.2350
 Euro/Sweden      EURSEK=     10.5188        10.5296     -0.10%         +0.47%      +10.5555    +10.4690
 
 (Reporting by Chuck Mikolajczak; Additional reporting by Olga Cotaga in London; Editing by Dan Grebler)
  
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