News: FOREX-Dollar falters as decent U.S. data curbs haven demand

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    • ADP jobs report in June shows hiring
    • U.S. manufacturing data rises
    • Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

    (Recasts, adds new comment, U.S. data, FX table, updates prices, changes byline, dateline; previous LONDON)

    The dollar slipped on Wednesday in choppy trading, with the market having a modest appetite for risk-taking amid generally upbeat U.S. data and improving European economic numbers.

    The greenback fell against currencies that perform well in times of times of risk appetite such as the Australian, New Zealand, and Canadian dollars, as well as sterling.

    However, moves in the currency market have little conviction, as doubts mounted about a much-anticipated global economic recovery given the resurgence of U.S. cases of COVID-19, the illness caused by the novel coronavirus, and the threat of renewed lockdowns in U.S. states deemed hot spots.

    "There's definitely a risk-on tone to the market, which continues to bet on the fact that we're past the worst point of COVID. But I think the jury is still out on that judgment," said Boris Schlossberg, managing director at BK Asset Management in New York.

    "There's a significant risk of reclosing some of the states. There's still a lot of risk-off flows, and the dollar could be the beneficiary of those flows," he added.

    The dollar reacted little to the ADP National Employment Report, which showed private payrolls increased by 2.369 million jobs last month. Data for May was revised upward to show payrolls surging 3.065 million, in line with a surprise rebound in job growth reported by the government, instead of tumbling 2.76 million as previously estimated.

    The dollar did lose ground as a safe haven, after U.S. manufacturing data showed a reading that suggested an expansion for the month of June.

    In Europe, IHS Markit's final euro zone Manufacturing Purchasing Managers' Index (PMI) moved closer to the 50 mark separating growth from contraction in June with transmission rates of the coronavirus falling in much of Europe and economies opening.

    Germany's manufacturing sector also contracted at a slower pace as Europe's largest economy lifted restrictions.

    In midmorning trading, the dollar was down 0.3% against a basket of currencies =USD at 97.145. Although the dollar has acted as a haven currency for much of the coronavirus crisis, U.S. fundamentals have played a bigger role recently, meaning it can appreciate on better-than-expected data.

    Against the yen, the dollar fell 0.5% to 107.42 yen JPY=EBS . Analysts said the yen's rise was safe haven-related given the declining stock markets, especially in Asia.

    The euro, meanwhile, rose 0.3% to $1.1258 EUR=EBS , after a rally in which the euro gained 6% against the dollar in May and early June.

    The Australian AUD=D3 and New Zealand dollars NZD=D3 both rose against the greenback.

    	======================================================== 
    	Currency bid prices at 10:10AM (1410 GMT) 
    
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
    											  Session											
     Euro/Dollar	  EUR=		$1.1258		$1.1231	 +0.24%		 +0.43%	  +1.1262	 +1.1186 
     Dollar/Yen	   JPY=		107.4400	   107.9200	-0.44%		 -1.30%	  +108.1600   +107.3700 
     Euro/Yen		 EURJPY=	 120.96		 121.22	  -0.21%		 -0.80%	  +121.4700   +120.2700 
     Dollar/Swiss	 CHF=		0.9457		 0.9471	  -0.15%		 -2.28%	  +0.9493	 +0.9458 
     Sterling/Dollar  GBP=		1.2439		 1.2399	  +0.32%		 -6.18%	  +1.2442	 +1.2360 
     Dollar/Canadian  CAD=		1.3569		 1.3573	  -0.03%		 +4.49%	  +1.3593	 +1.3545 
     Australian/Doll  AUD=		0.6936		 0.6902	  +0.49%		 -1.21%	  +0.6938	 +0.6878 
     ar																							  
    
     Euro/Swiss	   EURCHF=	 1.0651		 1.0641	  +0.09%		 -1.87%	  +1.0651	 +1.0613 
     Euro/Sterling	EURGBP=	 0.9050		 0.9057	  -0.08%		 +7.05%	  +0.9079	 +0.9022 
     NZ			   NZD=		0.6480		 0.6452	  +0.43%		 -3.80%	  +0.6482	 +0.6441 
     Dollar/Dollar																				   
    
     Dollar/Norway	NOK=		9.5198		 9.6150	  -0.99%		 +8.45%	  +9.6367	 +9.5203 
     Euro/Norway	  EURNOK=	 10.7217		10.8110	 -0.83%		 +8.98%	  +10.8280	+10.6990 
     Dollar/Sweden	SEK=		9.3024		 9.3188	  +0.05%		 -0.48%	  +9.3771	 +9.3004 
     Euro/Sweden	  EURSEK=	 10.4756		10.4699	 +0.05%		 +0.06%	  +10.5007	+10.4467                    
 
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