News: FOREX-Dollar fades after best day in three weeks; euro touches nine-day low

• Dollar pulls back after best day in 3 weeks
• Pound bounces off nine-day low
• Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds details, updates prices; previous LONDON)

The dollar index retreated on Wednesday, a day after notching its biggest daily percentage gain in three weeks and the euro touched a nine-day low, as global equity markets remained cautious in light of waning hopes for a COVID-19 vaccine or U.S. fiscal stimulus.

The dollar jumped on Tuesday on concerns about the length of time before a COVID-19 vaccine would be available and on diminishing expectations a fresh fiscal stimulus package would be agreed upon in the United States before the Nov. 3 presidential election.

Senate Majority Leader Mitch McConnell said on Tuesday the Republican-led U.S. Senate would vote next week on a targeted, $500 billion coronavirus economic aid bill of the type Democrats already have rejected as they hold out for trillions in relief.

"Right now the dollar is simply going back and forth on stimulus news, and it is not going very far," said Joseph Trevisani, senior analyst at FXStreet.com.

The greenback extended declines after data showed the U.S. producer price index for final demand rose 0.4% in September, topping the 0.2% forecast, after advancing 0.3% in August, amid a surge in the cost of hotel and motel accommodation that led to the first year-on-year gain since March.

The dollar index =USD fell 0.232%. The pound fell as low as $1.2865 as hopes dimmed for a Brexit agreement, before recovering as the European Union and Britain are set to prolong talks past a mid-October deadline to try to bridge persistent gaps holding up a new agreement, according to sources and documents.

"For the pound it is pretty much Brexit - Boris says something good, it goes up, Boris says something bad, it goes down. It doesn’t seem to be reacting terribly to the coronavirus," said Trevisani.

Sterling GBP= was last trading at $1.3046, up 0.87% on the day.

Euro zone industrial production data showed the rate of recovery slowed sharply in August, in line with expectations.

European nations are extending restrictions well beyond social life to close schools, cancel surgeries and enlist legions of student medics as overwhelmed authorities face their nightmare scenario of a COVID-19 resurgence at the onset of winter.

The euro EUR=EBS was up 0.11% to $1.17575.

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	Currency bid prices at 10:33 AM (1433 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.1757		$1.1745	 +0.11%		 +4.87%	  +1.1769	 +1.1719 
 Dollar/Yen		JPY=D3	 105.1950	   105.4600	-0.27%		 -3.17%	  +105.5100   +105.1650 
 Euro/Yen		  EURJPY=	123.67		 123.89	  -0.18%		 +1.41%	  +123.9500   +123.5900 
 Dollar/Swiss	  CHF=EBS	0.9127		 0.9149	  -0.24%		 -5.68%	  +0.9163	 +0.9125 
 Sterling/Dollar   GBP=D3	 1.3047		 1.2937	  +0.88%		 -1.60%	  +1.3053	 +1.2865 
 Dollar/Canadian   CAD=D3	 1.3140		 1.3136	  +0.05%		 +1.16%	  +1.3157	 +1.3116 
 Aussie/Dollar	 AUD=D3	 0.7172		 0.7161	  +0.15%		 +2.22%	  +0.7191	 +0.7153 
 Euro/Swiss		EURCHF=	1.0729		 1.0742	  -0.12%		 -1.13%	  +1.0749	 +1.0727 
 Euro/Sterling	 EURGBP=	0.9009		 0.9077	  -0.75%		 +6.56%	  +0.9121	 +0.9010 
 NZ				NZD=D3	 0.6656		 0.6648	  +0.12%		 -1.08%	  +0.6672	 +0.6645 
 Dollar/Dollar																				   

 Dollar/Norway	 NOK=D3	 9.1950		 9.2490	  -0.62%		 +4.78%	  +9.2715	 +9.1895 
 Euro/Norway	   EURNOK=	10.8113		10.8570	 -0.42%		 +9.89%	  +10.8800	+10.8010 
 Dollar/Sweden	 SEK=	   8.8143		 8.8295	  -0.08%		 -5.70%	  +8.8420	 +8.7961 
 Euro/Sweden	   EURSEK=	10.3624		10.3710	 -0.08%		 -0.99%	  +10.3840	+10.3451