FOREX-Dollar dips as stimulus hopes boosts risk sentiment

  • Reuters
  • Forex News
FOREX-Dollar dips as stimulus hopes boosts risk sentiment
Credit: © Reuters.

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds details, updates prices; previous LONDON)

By Karen Brettell

NEW YORK, Oct 5 (Reuters) - The safe-haven U.S. dollar dipped on Monday and riskier currencies outperformed as risk appetite improved on optimism that lawmakers in Washington will reach a deal for new stimulus to blunt the economic impact of the coronavirus.

Stocks opened higher on Monday on the stimulus hopes and as doctors said that U.S. President Donald Trump could be discharged from the hospital where he is being treated for COVID-19. .N

“There is definitely some more optimism around fiscal stimulus coming down the pike,” said Erik Nelson, a macro strategist at Wells Fargo (NYSE: WFC ) in New York.

U.S. House Speaker Nancy Pelosi said on Sunday progress was being made on coronavirus relief legislation. to reach a deal, however, would likely be positive for the dollar, which on Monday fell 0.41% against a basket of major currencies =USD .

“We think that the prospects for stimulus before the election are still very low,” Nelson said. “We're of the view that we should fade this dollar weakness we're seeing today, and in particular against some of these higher risk currencies like the Norwegian krone or the Australian dollar.”

The euro EUR= gained 0.57% to $1.1783, the highest since Sept. 21.

The Australian dollar AUD= rose 0.35% to $0.7187 and the greenback dipped 0.76% to 9.2296 krone NOK= .

Trump's COVID-19 diagnosis is adding an extra layer of uncertainty to how the U.S. Nov. 3 presidential election will play out, and what it could mean for the greenback.

"There isn't a clear consensus on how the dollar should trade on this degree of political uncertainty in the U.S.," said Jane Foley, senior FX strategist at Rabobank.

Trump could be discharged from the hospital where he is being treated for COVID-19 as soon as Monday, according to his doctors, although his condition remained unclear and outside experts warned it could be severe. U.S. Federal Reserve will release minutes from its September meeting on Wednesday and the European Central Bank will release its latest meeting minutes on Thursday.

Sterling GBP= gained 0.43% to $1.2986.

British Prime Minister Boris Johnson and the head of the EU's executive, Ursula von der Leyen, agreed in a phone call on Saturday to step up Brexit talks to close "significant gaps" barring a new trade partnership. bid prices at 9:38AM (1338 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=

$1.1783

$1.1716

+0.57%

+5.11%

+1.1786

+1.1708 Dollar/Yen

JPY=

105.5500

105.3300

+0.21%

-3.04%

+105.6700 +105.3000 Euro/Yen

EURJPY=

124.41

123.39

+0.83%

+2.02%

+124.4200 +123.3700 Dollar/Swiss

CHF=

0.9147

0.9209

-0.67%

-5.49%

+0.9207

+0.9149 Sterling/Dollar GBP=

1.2986

1.2931

+0.43%

-2.06%

+1.2987

+1.2901 Dollar/Canadian CAD=

1.3263

1.3307

-0.33%

+2.13%

+1.3303

+1.3260 Australian/Doll AUD=

0.7187

0.7162

+0.35%

+2.36%

+0.7191

+0.7157 ar

Euro/Swiss

EURCHF=

1.0779

1.0781

-0.02%

-0.67%

+1.0787

+1.0736 Euro/Sterling

EURGBP=

0.9073

0.9053

+0.22%

+7.32%

+0.9089

+0.9053 NZ

NZD=

0.6645

0.6635

+0.15%

-1.35%

+0.6654

+0.6631 Dollar/Dollar

Dollar/Norway

NOK=

9.2296

9.3000

-0.76%

+5.14%

+9.3359

+9.2244 Euro/Norway

EURNOK=

10.8770

10.9200

-0.39%

+10.57%

+10.9392

+10.8586 Dollar/Sweden

SEK=

8.8816

8.9396

+0.08%

-4.98%

+8.9397

+8.8843 Euro/Sweden

EURSEK=

10.4686

10.4600

+0.08%

-0.01%

+10.4865

+10.4470

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