News: FOREX-Dollar tumbles to two-week low as Nasdaq hit record closing high

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    • Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
    • Euro extends gains vs dollar
    • Commodity currencies rise vs dollar
    • Sterling rises after Britain unveils stimulus package

    (Updates prices, adds Nasdaq close)

    The dollar dropped to two-week lows on Wednesday, showing reduced safe-haven appeal for now, as U.S. tech stocks rallied and commodity prices firmed, even as sentiment remained cautious amid a resurgence of new coronavirus cases globally, particularly in the United States.

    The euro, meanwhile, rose to three-week highs against the dollar, while commodity currencies such as the Australian, New Zealand, and Canadian dollars gained.

    The NASDAQ index .IXIC hit a record closing high, supported by technology shares, reversing Tuesday's loss, feeding the currency market's risk appetite.

    The dollar is typically seen as a safe haven for investors to park their cash each time a resurgence of the pandemic seems to threaten a global economic recovery.

    "Investors are growing more confident that this stock market rally is not going to end any time soon," said Edward Moya, senior market analyst, at OANDA in New York. "And that's pretty much based on expectations that you're going to continue to see a strong global stimulus response over the coming weeks and months."

    That said, the U.S. Centers for Disease Control and Prevention (CDC) on Wednesday reported 2,982,900 cases of new coronavirus, an increase of 50,304 cases from its previous count. It said the number of deaths had risen by 932 to 131,065.

    Against a basket of its rivals, the dollar =USD dropped 0.5% to 96.479 in late afternoon trading. A decline in the dollar earlier this week set off the so-called "Death Cross," a bearish technical formation that occurs when the 50-day moving average crosses below the 200-day moving average.

    Past occurrences of the Death Cross have been followed by dollar weakness eight out of nine times since 1980 when the 200-day moving average has been declining, as it is now, analysts at BofA Securities said.

    The euro EUR=EBS rose 0.5% versus the dollar to $1.1329. Commodity currencies, which tend to thrive in times of increased risk appetite, also gained against the dollar.

    The Australian dollar rose 0.5% against the greenback to US$0.6981 AUD=D3 . The New Zealand dollar NZD=D3 grew 0.4% to US$0.6573, with the Canadian dollar CAD=D3 rising 0.7% to C$1.3509per U.S. dollar.

    Against the safe-haven yen, the dollar was down 0.2% on the day at 107.24 yen JPY=EBS . The greenback was also 0.5% lower versus the Swiss franc at 0.9380 franc CHF=EBS .

    Sterling GBP=D3 shrugged off earlier losses and rose 0.6% to $1.2613, after British finance minister Rishi Sunak promised 30 billion pounds ($37.7 billion) to head off an unemployment crisis by paying companies to bring back furloughed workers and cutting taxes for hospitality firms and homebuyers.

    Earlier, the onshore yuan CNY=CFXS was stable at 7.0129, halting a two-day rally, after the Chinese central bank's daily midpoint for the currency was set at a weaker than expected level.

    	======================================================== 
    	Currency bid prices at 4:17PM (2017 GMT) 
    
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
    											  Session											
     Euro/Dollar	  EUR=		$1.1332		$1.1270	 +0.55%		 +1.09%	  +1.1351	 +1.1264 
     Dollar/Yen	   JPY=		107.2400	   107.5100	-0.25%		 -1.49%	  +107.7000   +107.2100 
     Euro/Yen		 EURJPY=	 121.52		 121.20	  +0.26%		 -0.35%	  +121.8800   +121.1500 
     Dollar/Swiss	 CHF=		0.9380		 0.9421	  -0.44%		 -3.08%	  +0.9432	 +0.9371 
     Sterling/Dollar  GBP=		1.2614		 1.2540	  +0.59%		 -4.86%	  +1.2623	 +1.2510 
     Dollar/Canadian  CAD=		1.3509		 1.3602	  -0.68%		 +4.03%	  +1.3623	 +1.3493 
     Australian/Doll  AUD=		0.6983		 0.6946	  +0.53%		 -0.54%	  +0.6983	 +0.6928 
     ar																							  
    
     Euro/Swiss	   EURCHF=	 1.0630		 1.0623	  +0.07%		 -2.05%	  +1.0640	 +1.0616 
     Euro/Sterling	EURGBP=	 0.8982		 0.8987	  -0.06%		 +6.25%	  +0.9010	 +0.8976 
     NZ			   NZD=		0.6573		 0.6546	  +0.41%		 -2.41%	  +0.6578	 +0.6531 
     Dollar/Dollar																				   
    
     Dollar/Norway	NOK=		9.3779		 9.4714	  -0.99%		 +6.83%	  +9.5144	 +9.3820 
     Euro/Norway	  EURNOK=	 10.6290		10.7055	 -0.71%		 +8.04%	  +10.7310	+10.6300 
     Dollar/Sweden	SEK=		9.1767		 9.2630	  -0.39%		 -1.83%	  +9.2737	 +9.1694 
     Euro/Sweden	  EURSEK=	 10.4008		10.4416	 -0.39%		 -0.65%	  +10.4470	+10.3970 
    	<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
    ANALYSIS-'Death Cross' strikes U.S. dollar as COVID-19 cases grow	  
    

    Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

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