As U.S. virus cases surge, risk appetite falls U.S. spending,...

  1. 184,653 Posts.
    lightbulb Created with Sketch. 2711
    • As U.S. virus cases surge, risk appetite falls
    • U.S. spending, income data mixed, shows economy weathering storm
    • Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

    (Adds comment, updates prices)

    The safe-haven dollar edged higher in choppy trading on Friday, moving within narrow ranges, as investors grew cautious about a resurgence in U.S. coronavirus cases that has fueled doubts on expectations of a V-shaped recovery for the world's largest economy.

    Currencies that thrive with higher risk appetite, such as sterling and those linked to commodities like the Australian, New Zealand and Canadian dollars, struggled against the greenback.

    The U.S. Centers for Disease Control and Prevention (CDC) on Friday reported 2,414,870 U.S. cases of coronavirus, an increase of 40,588 from its previous count, and said deaths had risen by 2,516 to 124,325.

    Florida and Texas are leading the surge in new U.S. cases. Both states on Friday ordered bars to once again close down and imposed tighter restrictions on restaurants in a setback to efforts to open up their economies during the pandemic.

    "At the end of the day, it's very clear that we are in a deep economic hole. COVID-19 won't be easy to break away from," said Juan Perez, currency trader at Tempus Inc in Washington, referring to the respiratory illness caused by the novel coronavirus.

    In afternoon trading, the dollar was slightly higher against a basket of currencies 97.426 =USD . The dollar reacted little to data showing U.S. consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 8.2% last month, the largest increase since the government started tracking the series in 1959.

    That said, personal income fell 4.2% last month. "On balance, today's mixed numbers validate the view that the economy has weathered the worst of the coronavirus but underscore what's expected to be a choppy road to recovery," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

    The euro, meanwhile, edged higher against the dollar in see-saw trading to $1.1225 EUR=EBS . Traders said there were $2 billion in option expiries in the currency pair that went off earlier in the session at the $1.12 strike.

    On the week, the euro posted weekly gains of 0.4% against the dollar. Bank of America Merrill Lynch's trading platforms and broader positioning surveys indicate currency markets are long euro/dollar, though positioning is not stretched.

    The dollar was little changed against the yen at 107.17 yen JPY=EBS . In other currencies, the commodity-tied units fell as risk appetite weakened, with the Australian dollar down 0.3% against the U.S. dollar at US$0.6864 AUD=D3 . The U.S. dollar gained 0.1% at C$1.3653 CAD=D3 .

    	======================================================== 
    	Currency bid prices at 3:49PM (1949 GMT) 
    
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
    											  Session											
     Euro/Dollar	  EUR=		$1.1227		$1.1217	 +0.09%		 +0.15%	  +1.1239	 +1.1196 
     Dollar/Yen	   JPY=		107.1700	   107.1900	-0.02%		 -1.55%	  +107.3500   +106.8100 
     Euro/Yen		 EURJPY=	 120.33		 120.23	  +0.08%		 -1.33%	  +120.3700   +119.8100 
     Dollar/Swiss	 CHF=		0.9475		 0.9483	  -0.08%		 -2.10%	  +0.9499	 +0.9468 
     Sterling/Dollar  GBP=		1.2343		 1.2414	  -0.57%		 -6.91%	  +1.2437	 +1.2315 
     Dollar/Canadian  CAD=		1.3658		 1.3636	  +0.16%		 +5.17%	  +1.3715	 +1.3627 
     Australian/Doll  AUD=		0.6862		 0.6885	  -0.33%		 -2.26%	  +0.6895	 +0.6841 
     ar																							  
    
     Euro/Swiss	   EURCHF=	 1.0640		 1.0639	  +0.01%		 -1.95%	  +1.0645	 +1.0629 
     Euro/Sterling	EURGBP=	 0.9096		 0.9030	  +0.73%		 +7.59%	  +0.9100	 +0.9024 
     NZ			   NZD=		0.6420		 0.6428	  -0.12%		 -4.69%	  +0.6450	 +0.6403 
     Dollar/Dollar																				   
    
     Dollar/Norway	NOK=		9.7130		 9.6582	  +0.57%		 +10.65%	 +9.7539	 +9.6443 
     Euro/Norway	  EURNOK=	 10.9070		10.8420	 +0.60%		 +10.87%	 +10.9265	+10.8260 
     Dollar/Sweden	SEK=		9.3221		 9.3147	  +0.18%		 -0.27%	  +9.3770	 +9.3085 
     Euro/Sweden	  EURSEK=	 10.4701		10.4515	 +0.18%		 +0.01%	  +10.5025	+10.4490 
    	<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
    G10 FX monthly	https://tmsnrt.rs/384McNp 
    
    	^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>                    
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.