* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SINGAPORE, Jan 26 (Reuters) - The U.S. dollar steadied on
Tuesday as rising coronavirus cases and doubts over the speed
and size of U.S. stimulus tempered financial markets' upbeat
mood, while investors were also cautious ahead of the Federal
Reserve's review later in the week.
In overnight trading, bonds rallied, hard-running U.S.
equity markets cooled and the cautious move into safer assets
lifted the dollar index =USD a little bit to 90.353, which is
roughly in the middle of a range it has kept for the past two
weeks. US/ .N
The euro and yen are likewise hemmed in, with the euro
unable to break resistance around $1.2190 while the continent
grapples with new COVID-19 infections and fresh lockdowns.
The common currency EUR=EBS slipped slightly overnight to
$1.2142 and held there in early Asia trade. The yen JPY=EBS
was steady at 103.76 per dollar, while the risk-sensitive
Australian and New Zealand dollars softened marginally.
"Markets have come a long way on the hope that COVID goes
away and governments spend a lot of money," said Westpac
currency analyst Imre Speizer.
"Both of those have stalled at the moment, and so markets
will stall as well," he said, leaving the kiwi, for example, in
"indecision mode" between $0.7150 and $0.7240.
"One of those needs to break to give you direction for the
next couple of weeks," Speizer said. The kiwi NZD=D3 was last
at $0.7198 and the Australian dollar AUD=D3 at $0.7714.
Sterling GBP= was steady at $1.3670.
Investors had thought that Democrats' control of U.S.
Congress, won at Senate runoff elections in early January, could
smooth the passage of enormous pandemic relief spending.
Bets the U.S. dollar keeps falling, to extend a downtrend
which began last March, hit an almost decade high last week,
positioning data shows. 0#NETUSDFX=
However risk appetite has waned in the meantime as familiar
disagreements have emerged to so far delay passage of President
Joe Biden's $1.9 trillion. At the same time, coronavirus cases are surging and U.S.
economic data has pointed to a flagging pace in the recovery,
leaving investors looking for the Fed to maintain easy policy at
its Wednesday meeting, while bracing for lacklustre growth
figures on Thursday.
"Q4 (U.S.) GDP is expected to show a very sharp
deceleration," ANZ analysts said in a note to clients. "Support
from the Fed and fiscal intervention is badly needed and we
expect the (Fed) will dismiss any suggestion of early tapering."
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Currency bid prices at 8:27AM (027 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2137 $1.2143 -0.04% -0.66% +1.2146 +1.2137
Dollar/Yen JPY=D3 103.7550 103.8000 +0.00% +0.49% +103.7950 +0.0000
Euro/Yen EURJPY= 125.93 125.95 -0.02% -0.78% +126.0200 +125.9500
Dollar/Swiss CHF=EBS 0.8883 0.8879 +0.05% +0.41% +0.8884 +0.8879
Sterling/Dollar GBP=D3 1.3670 1.3676 -0.04% +0.06% +1.3679 +1.3670
Dollar/Canadian CAD=D3 1.2741 1.2742 +0.01% +0.07% +1.2743 +1.2740
Aussie/Dollar AUD=D3 0.7709 0.7713 -0.06% +0.20% +0.7719 +0.7708
NZ NZD=D3 0.7193 0.7199 -0.07% +0.18% +0.7201 +0.7194
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
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