Intel stock extends gains after report of possible U.S. government stake
* Dollar makes small broad gains early in Asia
* Sterling steady as Brexit breakthrough hopes support
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SINGAPORE, Oct 26 (Reuters) - The dollar found support on
Monday, as surging coronavirus cases in Europe and the United
States and a lack of progress toward a U.S. stimulus package put
traders in a cautious mood, although hopes for a Brexit trade
deal held sterling steady.
Against a basket of currencies =USD , the greenback traded
between steady and slightly firmer early in the Asia session,
hovering around the middle of a range it has held for months.
Against the risk-sensitive Australian dollar and New Zealand
dollars, it gained about 0.1%. Sterling GBP= , however, rose a
tiny bit to $1.3046.
The United States has recorded its highest ever number of
new COVID-19 cases for two consecutive days, while Italy has
ordered restaurants and bars to shut by 6 p.m. as a fresh wave
of infections sweeps Europe. U.S. House Speaker Nancy Pelosi said on Sunday that she
expected a White House response on Monday regarding the latest
stimulus spending plan - but there have been few tangible signs
that a long-stalled deal is actually nearer. "The combination of receding hopes for a pre-election fiscal
deal and the news on COVID and potentially stricter lockdowns is
enough to take a bite out of the stock market," said Ray
Attrill, head of FX strategy at National Australia Bank.
He said a dip in S&P 500 futures ESc1 had spilled over
into currency markets, where traders are also in a cautious mood
ahead of the U.S. election on Nov. 3.
The safe-haven Japanese yen JPY= edged higher to 104.72
per dollar and the euro EUR= slipped 0.1% to $1.1848.
Analysts reckon that a Joe Biden victory next week,
especially if the Democrats win control of the Senate, would
likely herald a large U.S. stimulus package and weaken the
dollar as the spending improves market sentiment.
"There's nothing to suggest that Biden's poll gap is
narrowing, but you can expect that the risk tone can become a
bit more cautious as we get closer to next Tuesday," Attrill
said from Sydney.
"But against that, there is a view that I would concur with,
that if by the middle of next week we have got a clean Biden win
... the short-term reaction to that will be very risk positive
and U.S.-dollar negative."
The slight dip in the Aussie AUD=D3 came despite early
support after the announcement of a $6.6 billion all-cash
takeover bid from Coca-Cola European Partners CCEPC.L for
local bottler Coca-Cola Amatil CCL.AX . Elsewhere hopes for a breakthrough in the trade-deal
stalemate between Britain and Europe held the pound steady above
$1.30. GBP/
Over the weekend, Britain's Northern Island minister said
there was a good chance of a trade deal. Later on Monday, investors will follow a German sentiment
survey at 0900 GMT, following a robust Purchasing Managers'
Index figure last week, and U.S. housing data, due at 1400 GMT.
China's top leaders chart the country's economic course for
2021-2025 at a key meeting starting on Monday, and may adopt a
lower or more flexible growth target. The yuan CNH= , which has soared more than 7% since May as
China has led the world's recovery from the COVID-19 pandemic,
was steady in offshore trade at 6.6631 per dollar. CNY/
The Malaysian ringgit MYR= opened a fraction firmer on
Monday after King Al-Sultan Abdullah rejected on Sunday a
request by Prime Minister Muhyiddin Yassin for him to declare a
state of emergency. Currency bid prices at 8:12AM (012 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1848 $1.1862 -0.12% +5.68% +1.1859 +1.1840
Dollar/Yen JPY=D3 104.7000 104.8000 +0.00% -3.51% +104.7500 +0.0000
Euro/Yen EURJPY= 124.04 124.19 -0.12% +1.71% +124.2200 +123.9800
Dollar/Swiss CHF=EBS 0.9045 0.9040 +0.09% -6.49% +0.9051 +0.9048
Sterling/Dollar GBP=D3 1.3050 1.3039 +0.09% -1.60% +1.3062 +1.3043
Dollar/Canadian CAD=D3 1.3144 1.3124 +0.17% +1.19% +1.3161 +1.3123
Aussie/Dollar AUD=D3 0.7133 0.7137 -0.06% +1.65% +0.7142 +0.7116
NZ NZD=D3 0.6684 0.6692 -0.10% -0.65% +0.6688 +0.6677
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX