Edition:
United Kingdom

Karen Brettell

Dollar edges higher before quarter-end

29 Jun 2020

NEW YORK The greenback edged higher on Monday as investors positioned for quarter-end and weighed an increase in coronavirus cases in some U.S. states against improving economic data.

FOREX-Dollar weakens on improving risk sentiment, coronavirus concerns remain

29 Jun 2020

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Adds details, updates prices; changes byline, dateline; previous LONDON) By Karen Brettell NEW YORK, June 29 The dollar fell on Monday as stocks opened higher, indicating improving risk sentiment despite a rise in coronavirus cases. Wall Street's gain came after a sharp drop on Friday. “It’s a weak start for the U.S. currency, I think it’s mostly risk on,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. Investors have been weighing better economic data against a new uptick in COVID-19 infections. The global death toll from the virus reached half a million on Sunday, according to a Reuters tally. Cases surged in Southern and Western U.S. states, prompting California to order some bars to close in a rollback of efforts to reopen the economy. The next major U.S. economic focus will be Thursday’s jobs report for June. U.S. employers are expected to have added 3 million jobs during the month, according to the median estimate of economists polled by Reuters. Projections vary widely between economists, however, from as few as 405,000 jobs to as many as 9 million. The dollar index was last down 0.21% at 97.27. The greenback may get some boost from quarter-end demand later on Monday or on Tuesday, after underperforming this quarter, analysts said. The euro gained 0.47% to $1.1270. The dollar gained 0.21% against the Japanese yen to 107.44 yen. Sterling weakened to a one-month low against the greenback on concerns about how Britain's government will pay for its planned infrastructure program. There are also doubts about whether Britain will seal a trade pact with the European Union as little progress has been made in agreeing Britain's future relationship with the bloc, which it exited on Jan. 31. The pound was last down 0.26% at $1.2301. ======================================================== Currency bid prices at 9:33AM (1333 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1270 $1.1217 +0.47% +0.54% +1.1288 +1.1218 Dollar/Yen JPY= 107.4400 107.2100 +0.21% -1.30% +107.4600 +107.0500 Euro/Yen EURJPY= 121.10 120.27 +0.69% -0.70% +121.1800 +120.1800 Dollar/Swiss CHF= 0.9465 0.9479 -0.15% -2.20% +0.9481 +0.9442 Sterling/Dollar GBP= 1.2301 1.2333 -0.26% -7.23% +1.2389 +1.2301 Dollar/Canadian CAD= 1.3673 1.3688 -0.11% +5.29% +1.3697 +1.3646 Australian/Doll AUD= 0.6856 0.6860 -0.06% -2.35% +0.6890 +0.6844 ar Euro/Swiss EURCHF= 1.0670 1.0634 +0.34% -1.68% +1.0674 +1.0636 Euro/Sterling EURGBP= 0.9160 0.9093 +0.74% +8.35% +0.9171 +0.9085 NZ NZD= 0.6416 0.6423 -0.11% -4.75% +0.6442 +0.6408 Dollar/Dollar Dollar/Norway NOK= 9.6737 9.6625 +0.12% +10.20% +9.7315 +9.6492 Euro/Norway EURNOK= 10.9045 10.9059 -0.01% +10.84% +10.9309 +10.8540 Dollar/Sweden SEK= 9.2873 9.3297 -0.02% -0.64% +9.3527 +9.2752 Euro/Sweden EURSEK= 10.4728 10.4753 -0.02% +0.03% +10.5105 +10.4540 (Additional reporting by Elizabeth Howcroft in London)

Dollar strengthens as virus fears dent risk appetite

25 Jun 2020

The U.S. dollar gained on Thursday due to safety buying as fears grew over a rapid rise in coronavirus infections in some U.S. states, and as trade tensions worsened between the United States and the European Union.

FOREX-Dollar gains as virus concerns dents risk appetite

25 Jun 2020

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds details, updates prices; changes byline, dateline; previous LONDON) By Karen Brettell NEW YORK, June 25 The U.S. dollar rose on Thursday on safety buying as fears grew over a rapid rise in coronavirus infections in some U.S. states and as trade tensions between the United States and the European Union increased. The governors of New York, New Jersey and Connecticut on Wednesday ordered travelers from eight other U.S. states to be quarantined for two weeks on arrival, as COVID-19 infections surged in regions spared the brunt of the initial outbreak. “It’s really fast accelerating in a lot of U.S. states, which is going to continue to be a problem for markets,” said Erik Nelson, a macro strategist at Wells Fargo in New York. Data on Thursday showed weak demand is forcing U.S. employers to lay off workers, keeping new applications for unemployment benefits extraordinarily high, even as businesses have reopened. New orders for U.S.-made capital goods rebounded more than expected in May, but recouped only a portion of the prior two months' declines. Forex markets have been closely following moves in equities as risk sentiment changes. Stocks opened lower on Thursday following their worst day in two weeks. The U.S. dollar index was last up 0.17% on the day at 97.40. A dispute between the United States and the European Union, in which Washington is flagging possible changes in tariffs on EU goods, also hurt risk sentiment. The euro was weighed down as riskier assets in the region, including Italian bonds, weakened, and as the European Central Bank fought back against a German court challenge to its money-printing plans. "There’s a little bit of unease going on in the European financial markets, which is probably weighing on the euro," said Nelson. The ECB also said it will offer euro loans against collateral to central banks outside the euro area to backstop funding markets amid the coronavirus pandemic. The euro was last down 0.31% at $1.1215. The dollar gained 0.17% against the Japanese yen to 107.2 yen. The Canadian dollar was little changed on the day after weakening on Wednesday, when Fitch Ratings cut the country from AAA, warning of a ballooning government deficit caused by public spending related to the pandemic. The loonie last traded at $1.3638. ======================================================== Currency bid prices at 10:03AM (1403 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1215 $1.1250 -0.31% +0.04% +1.1260 +1.1191 Dollar/Yen JPY= 107.2000 107.0200 +0.17% -1.52% +107.4500 +107.0000 Euro/Yen EURJPY= 120.23 120.42 -0.16% -1.40% +120.6200 +120.1500 Dollar/Swiss CHF= 0.9487 0.9477 +0.11% -1.97% +0.9507 +0.9475 Sterling/Dollar GBP= 1.2415 1.2418 -0.02% -6.37% +1.2464 +1.2390 Dollar/Canadian CAD= 1.3638 1.3637 +0.01% +5.02% +1.3666 +1.3607 Australian/Doll AUD= 0.6874 0.6872 +0.03% -2.09% +0.6889 +0.6848 ar Euro/Swiss EURCHF= 1.0642 1.0664 -0.21% -1.94% +1.0676 +1.0636 Euro/Sterling EURGBP= 0.9033 0.9059 -0.29% +6.85% +0.9066 +0.9002 NZ NZD= 0.6428 0.6408 +0.31% -4.57% +0.6442 +0.6400 Dollar/Dollar Dollar/Norway NOK= 9.6836 9.6627 +0.22% +10.31% +9.7374 +9.6445 Euro/Norway EURNOK= 10.8640 10.8830 -0.17% +10.43% +10.9360 +10.8329 Dollar/Sweden SEK= 9.3298 9.3473 -0.68% -0.19% +9.3826 +9.3235 Euro/Sweden EURSEK= 10.4648 10.5366 -0.68% -0.04% +10.5525 +10.4626 (Additional reporting by Julien Ponthus in London; Editing by Dan Grebler)

FOREX-Dollar gains on coronavirus, tariff concerns

24 Jun 2020

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds details, updates prices; changes byline, dateline; previous LONDON) By Karen Brettell NEW YORK, June 24 The dollar gained on Wednesday as a rise in coronavirus cases in the United States weighed on optimism about a quick economic recovery, and as the U.S. weighed tariffs on European products. Arizona, California, Mississippi and Nevada on Tuesday reported record numbers of new cases of COVID-19, the disease caused by the novel coronavirus, while Texas set a record on Monday. “The positive market mood during yesterday’s North American session on economic rebound optimism stalled overnight as concern may be building in overseas markets over rising COVID-19 case counts in the U.S.,” analysts at Scotiabank said in a report. The coronavirus pandemic is causing wider and deeper damage to economic activity than first thought, the International Monetary Fund said on Wednesday, prompting the institution to slash its 2020 global output forecasts further. Concerns about an increase tariffs also weighed on risk sentiment, and boosted demand for the greenback. The United States is weighing its tariffs on European products and is considering changing rates for various products as part of the trading partners' aircraft dispute, according to a notice by the Office of the U.S. Trade Representative on Tuesday. The dollar index gained 0.33% to 96.45. It has fallen from a three-year high of 102.99 in March. The euro fell 0.32% to $1.1270. It had reached a one-week high of $1.1348 on Tuesday after data showed that a downturn in the euro zone economy eased again this month. The greenback rose 0.19% to 106.71 Japanese yen. It fell as low as 106.06 yen on Tuesday, the weakest since May 7. The New Zealand dollar underperformed after the country's central bank said the balance of economic risks remains to the downside and that it is prepared to use additional monetary tools as necessary. The kiwi was last down 0.91% at $0.6430. ======================================================== Currency bid prices at 9:36AM (1336 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1270 $1.1306 -0.32% +0.54% +1.1325 +1.1266 Dollar/Yen JPY= 106.7100 106.5100 +0.19% -1.98% +106.7900 +106.3900 Euro/Yen EURJPY= 120.26 120.46 -0.17% -1.38% +120.7400 +120.0500 Dollar/Swiss CHF= 0.9473 0.9445 +0.30% -2.11% +0.9480 +0.9434 Sterling/Dollar GBP= 1.2480 1.2518 -0.30% -5.88% +1.2542 +1.2467 Dollar/Canadian CAD= 1.3571 1.3545 +0.19% +4.50% +1.3596 +1.3527 Australian/Doll AUD= 0.6906 0.6929 -0.33% -1.64% +0.6961 +0.6897 ar Euro/Swiss EURCHF= 1.0677 1.0681 -0.04% -1.61% +1.0692 +1.0661 Euro/Sterling EURGBP= 0.9028 0.9031 -0.03% +6.79% +0.9056 +0.9017 NZ NZD= 0.6430 0.6489 -0.91% -4.54% +0.6514 +0.6423 Dollar/Dollar Dollar/Norway NOK= 9.5480 9.5213 +0.28% +8.77% +9.6072 +9.4796 Euro/Norway EURNOK= 10.7594 10.7560 +0.03% +9.37% +10.8321 +10.7309 Dollar/Sweden SEK= 9.3071 9.2914 -0.17% -0.43% +9.3450 +9.2545 Euro/Sweden EURSEK= 10.4886 10.5066 -0.17% +0.19% +10.5415 +10.4782 (Additional reporting by Iain Withers in London Editing by Sonya Hepinstall)

Euro rises on upbeat data, Trump says China trade deal still intact

23 Jun 2020

NEW YORK The euro jumped to one-week highs following positive economic data on Tuesday, while the Australian dollar and other higher-risk currencies strengthened after U.S. officials confirmed that the U.S.-China trade deal remained intact.

Euro rises on positive data, U.S. says China trade deal still on track

23 Jun 2020

NEW YORK The euro jumped to one-week high following positive economic data on Tuesday and higher-risk currencies, including the Australian dollar, were boosted after U.S. officials confirmed that the U.S.-China trade deal is intact.

Dollar dips, Aussie gains as traders bet on pandemic recovery

22 Jun 2020

The U.S. dollar weakened and higher-risk currencies including the Australian dollar jumped on Monday as investors focused on the prospect for an eventual economic recovery from the coronavirus pandemic.

FOREX-Dollar dips, Aussie outperforms as investors weigh coronavirus impact

22 Jun 2020

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Adds details, updates prices; changes byline, dateline; previous LONDON) By Karen Brettell NEW YORK, June 22 The U.S. dollar dropped and higher risk currencies including the Australian dollar jumped on Monday as investors weighed improving economic data against the prospect of new business shutdowns as the coronavirus spread further. The World Health Organization (WHO) reported a record increase in global novel coronavirus cases on Sunday. The biggest rise in cases was in North America and South America. On Friday, Apple Inc said it was temporarily shutting some stores again in Florida, Arizona, South Carolina, and North Carolina in the United States due to fresh outbreaks. “Concerns of a second wave of infections weighed on markets during the Asian sessions but seem to have faded,” said Win Thin, global head of currency strategy at Brown Brothers Harriman. Strong economic data has raised hopes the economy will bounce back quickly from business shutdowns. Francesco Pesole, FX strategist at ING, said financial markets were watching the extent to which new cases led to tighter lockdown measures. "If markets start to make the connection that more cases will automatically imply new lockdowns then obviously it will get much more sensitive to any new peak in terms of second wave," Pesole said. The dollar dipped 0.48% against a basket of currencies to 97.214. The euro gained 0.55% versus the dollar to 1.1237, rising off recent two-and-a-half-week lows. On Friday, EU leaders agreed urgent action was needed to haul their economies from the deepest recession since World War Two, but made no progress on a massive stimulus plan that has divided them for weeks. Riskier currencies outperformed with the Australian dollar up 0.86% at $0.6891 against the greenback. Reserve Bank of Australia (RBA) Governor Philip Lowe said the currency's recent rise was not a problem and the impact of the pandemic would not be as bad as feared. A broad gauge of dollar positioning on Friday showed speculators increased their short bets against the greenback to the most since May 2018, at $16.27 billion. ======================================================== Currency bid prices at 9:51AM (1351 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1237 $1.1175 +0.55% +0.24% +1.1243 +1.1169 Dollar/Yen JPY= 106.8000 106.8700 -0.07% -1.89% +107.0000 +106.7800 Euro/Yen EURJPY= 120.03 119.43 +0.50% -1.57% +120.1200 +119.3200 Dollar/Swiss CHF= 0.9487 0.9523 -0.38% -1.97% +0.9528 +0.9487 Sterling/Dollar GBP= 1.2414 1.2356 +0.47% -6.37% +1.2434 +1.2336 Dollar/Canadian CAD= 1.3553 1.3603 -0.37% +4.39% +1.3630 +1.3546 Australian/Doll AUD= 0.6891 0.6832 +0.86% -1.85% +0.6894 +0.6806 ar Euro/Swiss EURCHF= 1.0663 1.0640 +0.22% -1.74% +1.0668 +1.0640 Euro/Sterling EURGBP= 0.9049 0.9049 +0.00% +7.05% +0.9065 +0.9021 NZ NZD= 0.6480 0.6405 +1.17% -3.82% +0.6483 +0.6372 Dollar/Dollar Dollar/Norway NOK= 9.6095 9.6405 -0.32% +9.49% +9.7137 +9.5754 Euro/Norway EURNOK= 10.8020 10.7733 +0.27% +9.80% +10.8665 +10.7339 Dollar/Sweden SEK= 9.3816 9.4673 -0.50% +0.37% +9.4718 +9.3776 Euro/Sweden EURSEK= 10.5440 10.5970 -0.50% +0.71% +10.5975 +10.5388 (Additional eporting by Elizabeth Howcroft in London; Editing by David Gregorio)

TREASURIES-Yields erase earlier rise on concerns about spread of coronavirus

19 Jun 2020

(Recasts with yield move, adds quote, Powell comments, updates prices) By Karen Brettell NEW YORK, June 19 U.S. Treasury yields gave up earlier gains on Friday as the spread of the novel coronavirus in some U.S. states cast doubts on whether the economy will bounce back as quickly as hoped. Apple Inc said on Friday it is temporarily shutting some stores again in Florida, Arizona, South Carolina, and North Carolina. California, North Carolina and a string of U.S. cities mandated or urged mandatory mask use on Thursday to get a grip on spiraling coronavirus cases as at least six states set daily records. Benchmark 10-year note yields were little changed on the day at 0.699%, after earlier rising to 0.745%. The yield curve between two-year and 10-year notes was steady on the day at 51 basis points. Yields had risen earlier on Friday as risk sentiment improved after Bloomberg News reported that China will accelerate purchases of U.S. farm goods to comply with the Phase One trade deal with the United States. But 10-year yields have failed to break above an 11-week high of 0.959% reached on June 5, when data showed that employers unexpectedly added jobs in May. “Even before the pandemic we were still in an environment where growth and inflation were not in any danger of overheating,” said Michael Lorizio, senior fixed income trader at Manulife Asset Management in Boston. “So I think it makes sense that the most liquid fixed income asset in the world is going to continue to be sought after.” Federal Reserve Chair Jerome Powell said on Friday that the U.S. economic recovery from the novel coronavirus epidemic is set to be challenging and there will be no quick fix. The U.S. central bank earlier this month signaled it plans years of extraordinary support for the economy, with policymakers projecting the economy to shrink 6.5% in 2020 and the unemployment rate to be 9.3% at year's end. June 19 Friday 2:52PM New York / 1852 GMT Price US T BONDS SEP0 177-8/32 -0-5/32 10YR TNotes SEP0 138-196/256 -0-16/25 6 Price Current Net Yield % Change (bps) Three-month bills 0.1525 0.1547 -0.002 Six-month bills 0.17 0.1725 -0.002 Two-year note 99-225/256 0.1876 -0.007 Three-year note 100-24/256 0.2184 -0.003 Five-year note 99-160/256 0.3266 0.001 Seven-year note 99-204/256 0.5298 0.007 10-year note 99-76/256 0.6986 0.005 20-year bond 98-28/256 1.2324 0.007 30-year bond 94-172/256 1.4709 0.010 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 6.50 0.50 spread U.S. 3-year dollar swap 4.50 0.25 spread U.S. 5-year dollar swap 3.50 0.25 spread U.S. 10-year dollar swap -2.25 0.50 spread U.S. 30-year dollar swap -49.75 0.75 spread (Editing by Chizu Nomiyama)

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