(Adds quote, updates prices, new byline, changes dateline,...

  1. 184,648 Posts.
    lightbulb Created with Sketch. 2711

    (Adds quote, updates prices, new byline, changes dateline, previous LONDON)

    The dollar fell broadly on Tuesday after the U.S. Federal Reserve on Monday committed to buy an unlimited amount of bonds and as investors were optimistic the American government would pass a stimulus package to offset the economic impact of the coronavirus pandemic.

    Against a basket of its rivals =USD , the dollar fell 0.42% to 101.71. It is down from a more than three-year high of 102.99 on Friday.

    "The Fed's measures are unprecedented, and they have been extremely proactive in preventing this external shock from morphing into a wider funding crisis," said Vasileios Gkionakis, head of FX strategy at Lombard Odier.

    The Fed on Monday announced various programs, including purchases of corporate bonds, guarantees for direct loans to companies and a plan to get credit to small and medium-sized business.

    While the Fed's latest measures were seen to have effectively broken the spreading freeze in the dollar funding markets in the short term, the shock to the real economy is expected to last for a far longer period.

    The U.S. Senate could pass a $2 trillion coronavirus economic stimulus package as soon as Tuesday, negotiators said, which analysts say is needed to blunt the economic harm from business shutdowns.

    Ulrich Leuchtmann, head of foreign exchange and commodity research at Commerzbank, said in a note that, as more economies enact draconian measures to lock down their economies, the global economy would be massively constrained in the near future and markets could quickly turn back into risk-off mode.

    "While we think that most currencies will eventually regain much of the ground that they have recently lost to the U.S. dollar, we don’t expect that process to start until the pandemic has clearly passed its worst," Oliver Allen, assistant economist at Capital Economics, said in a report.

    Against the dollar, the euro EUR= jumped 0.82% to $1.0809. Some more relief was also evident in dollar funding markets, with measures of short-term funding indicators such as euro-dollar FX swaps for three-month maturities EURCBS3M=ICAP stabilizing around 8 basis points after blowing out to more than 100 bps last week.

    The British pound also rose 1.72% to $1.1747 GBP= , up from a 35-year low of $1.1413 set last week.

    The Australian dollar gained 1.53% to $0.5916 AUD= , extending its recovery from a 17-year low of $0.5510 last week.

    	======================================================== 
    	Currency bid prices at 10:19AM (1419 GMT) 
    
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
    											  Session											
     Euro/Dollar	  EUR=		$1.0809		$1.0721	 +0.82%		 -3.60%	  +1.0887	 +1.0724 
     Dollar/Yen	   JPY=		111.1300	   111.2000	-0.06%		 +2.09%	  +111.2800   +110.1000 
     Euro/Yen		 EURJPY=	 120.12		 119.30	  +0.69%		 -1.50%	  +120.5200   +118.8400 
     Dollar/Swiss	 CHF=		0.9797		 0.9845	  -0.49%		 +1.23%	  +0.9850	 +0.9720 
     Sterling/Dollar  GBP=		1.1747		 1.1548	  +1.72%		 -11.40%	 +1.1790	 +1.1511 
     Dollar/Canadian  CAD=		1.4444		 1.4496	  -0.36%		 +11.23%	 +1.4532	 +1.4375 
     Australian/Doll  AUD=		0.5916		 0.5827	  +1.53%		 -15.74%	 +0.5974	 +0.5813 
     ar																							  
    
     Euro/Swiss	   EURCHF=	 1.0588		 1.0560	  +0.27%		 -2.43%	  +1.0598	 +1.0558 
     Euro/Sterling	EURGBP=	 0.9202		 0.9286	  -0.90%		 +8.85%	  +0.9326	 +0.9191 
     NZ			   NZD=		0.5796		 0.5720	  +1.33%		 -13.97%	 +0.5839	 +0.5693 
     Dollar/Dollar																				   
    
     Dollar/Norway	NOK=		11.0961		11.5363	 -3.82%		 +26.40%	 +11.5981	+10.8613 
     Euro/Norway	  EURNOK=	 11.9950		12.4180	 -3.41%		 +21.93%	 +12.4770	+11.7980 
     Dollar/Sweden	SEK=		10.1722		10.3150	 -1.20%		 +8.82%	  +10.3722	+10.1223 
     Euro/Sweden	  EURSEK=	 10.9961		11.1300	 -1.20%		 +5.03%	  +11.1280	+10.9940 
    	<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
    Euro positions	https://reut.rs/2QG2y7E 
    
    	^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>                    
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.