* Dollar falls to 2-1/2-year low
* Euro, Swiss franc notch best week in a month
* U.S. November jobs data disappoints
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds analysts comment, latest Brexit news, Chicago Fed's Evans comments, updates prices)
By Gertrude Chavez-Dreyfuss and Suzanne Barlyn
NEW YORK, Dec 4 (Reuters) - The U.S. dollar rose from 2-1/2-year lows on Friday, as European Union and
British negotiators paused talks for a post-Brexit trade deal, weighing on sterling, though the greenback
still posted its worst week in a month after investors shrugged off a weaker-than-expected U.S. employment
report.
In late trading, the dollar index rose 0.1% to $90.725 =USD ahead of the weekend, climbing from its
lowest level since April 2018. On the week, the index was down 1.3%, its largest weekly loss since early
November.
Britain and the European Union paused talks on Friday after failing to narrow differences sufficiently
to reach a trade agreement, less than four weeks before Britain completes its Brexit journey out of the
bloc. The negotiators, Britain's David Frost and the EU's Michel Barnier, said they would brief their
leaders to seek new impetus for the talks.
Upbeat announcements on COVID-19 vaccines have helped drive a rally in riskier currencies at the
expense of the safe-haven dollar.
The euro and Swiss franc, in contrast, were headed for their best week in a month against the dollar.
The single European currency touched a 2-1/2-year high, while the Swiss franc rose to its highest in
nearly six years.
Data showed that U.S. non-farm payrolls increased by 245,000 jobs last month after rising by 610,000
in October. That was the smallest gain since the jobs recovery started in May. "The biggest development this afternoon has been what I'm telling clients is a 'fakeout-breakout' in
pound sterling," said Toronto-based Erik Bregar, head of FX strategy for the Exchange Bank of Canada,
referring to the possibility of a Brexit deal that is now on pause. "It makes me think about more downside
afterwards."
The renewed possibility that Congress might forge another U.S. fiscal stimulus package and enthusiasm
about progress on the development of COVID-19 vaccines remain key drivers in foreign exchange, strategists
said.
The jobs data and surge in COVID-19 cases are unlikely to trigger a rush by the U.S. Federal Reserve
to ramp up its bond-buying. Chicago Federal Reserve Bank President Charles Evans told reporters on Friday
that the Fed could assess asset purchases in springtime, when there is more clarity on the economic
outlook. U.S. House of Representatives Speaker Nancy Pelosi said on Friday there was momentum behind talks on a
coronavirus relief bill and that a bipartisan proposal could be the basis for relief negotiations. That
should keep risk appetite higher. The euro has been one of the biggest winners from recent dollar weakness, breaking decisively above
$1.20 this week.
The single currency rose to $1.2177, its highest since April 2018, and was last down 0.2% at $1.2118
EUR=EBS .
Against the Swiss franc, the dollar recovered to trade slightly higher at 0.8910 franc, after earlier
dropping to a nearly six-year low of 0.8886 franc CHF=EBS . The greenback was last down .06% at 0.8903.
The dollar gained 0.3% against the yen JPY= to 104.15 yen JPY=EBS .
Sterling fell 0.2% against the dollar to $1.3423 GBP=D3 after trade talks for a post-Brexit trade
deal with the European Union hit a snag ahead of the weekend. GBP/
Bitcoin BTB=BTSP pulled back to trade late on Friday at $18,906.54 after failing to break above
$20,000 for the first time earlier this week.
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Currency bid prices at 3:50PM (2050 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.7980 90.6930 +0.13% +0.00% +90.8310 +90.4710
Euro/Dollar EUR=EBS $1.2121 $1.2145 -0.20% +8.12% +1.2177 +1.2117
Dollar/Yen JPY=D3 104.1600 103.9000 +0.19% -4.16% +104.2350 +103.7800
Euro/Yen EURJPY= 126.24 126.11 +0.10% +3.52% +126.6700 +126.0500
Dollar/Swiss CHF=EBS 0.8910 0.8910 +0.05% -7.88% +0.8917 +0.8886
Sterling/Dollar GBP=D3 1.3422 1.3448 -0.17% +1.22% +1.3538 +1.3409
Dollar/Canadian CAD=D3 1.2776 1.2864 -0.67% -1.64% +1.2873 +1.2775
Aussie/Dollar AUD=D3 0.7430 0.7442 -0.15% +5.89% +0.7443 +0.7410
Euro/Swiss EURCHF= 1.0801 1.0818 -0.16% -0.50% +1.0848 +1.0801
Euro/Sterling EURGBP= 0.9028 0.9026 +0.02% +6.79% +0.9067 +0.8984
NZ NZD=D3 0.7039 0.7078 -0.54% +4.62% +0.7079 +0.7028
Dollar/Dollar
Dollar/Norway NOK=D3 8.8000 8.7370 +0.65% +0.25% +8.8035 +8.7480
Euro/Norway EURNOK= 10.6690 10.6288 +0.38% +8.45% +10.6826 +10.6182
Dollar/Sweden SEK= 8.4546 8.4256 -0.06% -9.55% +8.4596 +8.4190
Euro/Sweden EURSEK= 10.2480 10.2539 -0.06% -2.11% +10.2820 +10.2343
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Dollar in free fall? https://tmsnrt.rs/36HA2eb
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