* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Dollar supported against euro and yen
* Sterling in focus before BoE meeting
* U.S. stimulus, vaccine progress give markets hope
By Stanley White
TOKYO, Feb 4 (Reuters) - The dollar traded near its
strongest in more than two months against the euro and the yen
on Thursday as pessimism about the U.S. economic outlook receded
before the release of important data on the jobs market.
The British pound held steady against the dollar and traded
near an eight-month high versus the euro ahead of a Bank of
England policy meeting that will publish findings on the
feasibility of negative interest rates.
Sentiment for the dollar has improved recently as progress
in coronavirus vaccinations, moves by U.S. President Joe Biden
to pass more fiscal stimulus, and improving economic data forced
some bearish investors to give up their short positions.
The dollar faces another test on Friday with the release of
non-farm payrolls data, which will help confirm whether the
world's largest economy has shrugged off a dip in growth toward
the end of last year.
"The dollar's recovery was triggered by a rebound in yields
and an increase in inflation expectations," said Junichi
Ishikawa, senior foreign exchange strategist at IG Securities.
"This is supporting the dollar, which now has more room to
rise against the euro, because the euro zone looks like it is
lagging behind U.S. economic growth."
Against the euro, the dollar EUR=D3 stood at $1.2035,
close to a nine-week high.
The pound GBP=D3 bought $1.3643, stabilising after a 0.2%
decline in the previous session. Sterling traded at 88.19 pence
per euro EURGBP=D3 , near the strongest since May last year.
The dollar was quoted at 105.04 yen JPY=D3 , near its
highest since mid-November.
Data due on Friday is forecast to show the U.S. economy
added 50,000 jobs in January, which would be a mild recovery
from shedding 140,000 jobs in the previous month as a spike in
coronavirus infections curbed economic activity.
Since the start of the year expectations for big fiscal
stimulus under Biden's Democratic government have supported
sentiment.
The pace of vaccinations in the United States has also
picked up, causing many investors to temper their pessimism.
The dollar index USD= against a basket of six major
currencies stood at 91.066, not far from the highest since early
December.
The Bank of England is not expected to change interest rates
or quantitative easing at its meeting on Thursday, but sterling
will be closely watched as investors try to measure the
likelihood of negative interest rates. In the cryptocurrency market, ethereum ETH=BTSP hit a
record of $1,698 ahead of the listing of ethereum futures on the
Chicago Mercantile Exchange next week.
Bitcoin BTH=BTSP , the most popular crypto currency, held
steady at $37,752.
Elsewhere, the Australian dollar AUD=D3 edged up to
$0.7646, supported by hopes for U.S. stimulus and progress in
securing coronavirus vaccines.
Reserve Bank of Australia will update its economic forecasts
on Friday, which could determine whether the Aussie continues to
rise. Across the Tasman Sea, the New Zealand dollar NZD=D3 rose
to $0.7215.
========================================================
Currency bid prices at 11:17AM (0217 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2035 $1.2035 +0.01% -1.49% +1.2043 +1.2031
Dollar/Yen JPY=D3 105.0400 105.0700 -0.04% +1.69% +105.0700 +105.0200
Euro/Yen EURJPY= 126.41 126.39 +0.02% -0.40% +126.4600 +126.3600
Dollar/Swiss CHF=EBS 0.8990 0.8990 +0.00% +1.61% +0.8992 +0.8987
Sterling/Dollar GBP=D3 1.3643 1.3642 +0.04% -0.11% +1.3652 +1.3640
Dollar/Canadian CAD=D3 1.2780 1.2785 -0.03% +0.37% +1.2790 +1.2779
Aussie/Dollar AUD=D3 0.7646 0.7618 +0.37% -0.60% +0.7648 +0.7617
NZ NZD=D3 0.7215 0.7213 +0.06% +0.50% +0.7224 +0.7204
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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