tradingigbtc

FOREX-Dollar strengthens as vaccine, stimulus hopes dim

By Chuck Mikolajczak

NEW YORK, Oct 13 (Reuters)The U.S. dollar strengthened on Tuesday as investors turned cautious after a Johnson & Johnson COVID-19 study was paused and as hopes dimmed that a fiscal stimulus package could be reached before the presidential election.

Major equity averages were lower, partly due to a decline in J&J JNJ.N shares after the company paused its study due to an unexplained illness in a participant, dampening optimism about a vaccine. Eli Lilly LLY.N also said its clinical trial for a COVID-19 antibody treatment was paused.

U.S. consumer prices rose 0.2% in September, matching expectations, for a fourth straight monthly climb, though the pace has slowed amid considerable slack in the economy as it slowly recovers from a nadir caused by coronavirus shutdowns.

The dollar index =USD rose 0.528% against a basket of other currencies, putting it on track for its biggest daily percentage gain in three weeks.

The U.S. currency’s safe-haven appeal has been curbed by growing expectations that a win by former U.S. Vice President Joe Biden on Nov. 3 would bring large stimulus for the pandemic-hit economy, bolstering the stock market and investor risk appetite.

“It’s becoming increasingly evident to people that there is no stimulus coming before the election,” said Erik Nelson, a currency strategist at Wells Fargo in New York.

“I wouldn’t say markets were fully pricing stimulus or fully pricing a vaccine by the end of the year but they were probably tilted towards the more positive side of those expectations.”

The greenback has held within a range of about 2% over the past three weeks as talks on a fiscal deal have progressed in fits and starts. Majority Leader Mitch McConnell said the Republican-led U.S. Senate would vote on a scaled-down coronavirus economic relief bill of the type Democrats have rejected as they hold out for trillions in aid.

The euro EUR=EBS was down 0.59% to $1.1745 while the Japanese yen weakened 0.17% versus the greenback.

Sterling GBP= was last trading at $1.2938, down 0.96%, after climbing above the $1.30 mark for the first time in a month on Friday as Britain’s unemployment rate rose by more than expected to 4.5% in the three months to August.

In addition, as a deadline draws closer, British Prime Minister Boris Johnson told his top cabinet ministers on Tuesday he wanted a free trade deal with the European Union on the right terms but ending the year without one held “no fear.”

========================================================

Currency bid prices at 2:54PM (1854 GMT)

Description

RIC

Last

U.S. Close Previous Session

Pct Change

YTD Pct Change

High Bid

Low Bid

Euro/Dollar

EUR=EBS

$1.1745

$1.1815

-0.59%

+4.76%

+1.1815

+1.1730

Dollar/Yen

JPY=D3

105.4850

105.3550

+0.15%

-2.86%

+105.6200

+105.2900

Euro/Yen

EURJPY=

123.88

124.40

-0.42%

+1.58%

+124.4700

+123.8100

Dollar/Swiss

CHF=EBS

0.9146

0.9092

+0.61%

-5.47%

+0.9155

+0.9091

Sterling/Dollar

GBP=D3

1.2937

1.3066

-0.99%

-2.47%

+1.3067

+1.2922

Dollar/Canadian

CAD=D3

1.3140

1.3109

+0.24%

+1.15%

+1.3146

+1.3100

Aussie/Dollar

AUD=D3

0.7153

0.7211

-0.81%

+1.94%

+0.7210

+0.7151

Euro/Swiss

EURCHF=

1.0741

1.0738

+0.03%

-1.02%

+1.0745

+1.0726

Euro/Sterling

EURGBP=

0.9077

0.9040

+0.41%

+7.37%

+0.9081

+0.9020

NZ Dollar/Dollar

NZD=D3

0.6641

0.6647

-0.09%

-1.31%

+0.6670

+0.6630

Dollar/Norway

NOK=D3

9.2420

9.1545

+1.03%

+5.44%

+9.2465

+9.1390

Euro/Norway

EURNOK=

10.8564

10.7914

+0.60%

+10.35%

+10.8598

+10.7769

Dollar/Sweden

SEK=

8.8268

8.7884

-0.20%

-5.57%

+8.8294

+8.7569

Euro/Sweden

EURSEK=

10.3672

10.3884

-0.20%

-0.97%

+10.4100

+10.3307

(Reporting by Chuck Mikolajczak Editing by Sonya Hepinstall)

((charles.mikolajczak@tr.com; @ChuckMik; Reuters Messaging: charles.mikolajczak.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source Article