* Dollar holds gains against major currencies
* Full data calendar awaits traders later in day
* Aussie and kiwi stabilise after brief declines
By Stanley White
TOKYO, March 26 (Reuters) - The dollar traded near
multi-month highs against most major currencies on Friday,
supported by a wave of optimism over improving U.S. economic
data, the rollout of coronavirus vaccines, and rising Treasury
yields.
The euro rebounded slightly ahead of data on German business
sentiment due later in the day, but the outlook for the common
European currency has soured because of renewed coronavirus
lockdowns and the slow pace of vaccinations across the European
Union.
The greenback has more room to rise against the euro, but
its gains against other currencies in the past few weeks have
been so rapid that some analysts are warning against chasing the
dollar higher from current levels.
"The euro has broken through the 200-day moving average, and
that is a clear sign that it will continue to go lower," said
Minori Uchida, head of global markets research at MUFG Bank in
Tokyo.
"The yen is getting strong on some of the crosses, which
will cap dollar/yen. Yields have supported the dollar, but this
move could start to run out of steam."
Against the euro EUR=D3 , the dollar fell to $1.1781 but
was still near its strongest level since November last year.
The dollar bought 109.18 yen JPY=D3 , which is near its
highest since June.
The greenback traded at 0.9395 Swiss franc CHF=D3 , holding
onto a 0.5% gain from the previous session.
One notable exception to the dollar's gains was the British
pound GBP=D3 , which edged up to $1.3758 after rising 0.4% on
Thursday. Data due on Friday that is forecast to show a rebound
in British retail sales could give the pound a further boost.
U.S. jobless claims fell to a one-year low last week and
President Joe Biden said he will double his vaccination rollout
plan after reaching his previous goal of 100 million shots 42
days ahead of schedule, both of which support optimism in the
dollar. The dollar index USD= against a basket of six major
currencies stood at 92.788, close to a four-month high. For the
week the dollar index was on course for a 0.9% gain.
Traders will look to data on U.S. personal consumption due
later on Friday for further hints about the strength of the U.S.
economy.
During European trading Germany's Ifo survey is expected to
show an improvement in business morale. But this is unlikely to
halt the euro's slide, because worries about the European
Union's slow vaccination rollout and bickering with former
member Britain over vaccine exports have become a dominant
theme, traders said.
The Australian AUD=D3 and New Zealand dollars NZD=D3
rebounded from sharp losses earlier in the week.
The two currencies are likely to remain supported because
their relative success in limiting the economic fallout caused
by the coronavirus pandemic, analysts said.
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Currency bid prices at 0206 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1781 $1.1764 +0.14% -3.58% +1.1785 +1.1763
Dollar/Yen JPY=D3 109.1850 109.1050 +0.11% +5.75% +109.3100 +109.1350
Euro/Yen EURJPY= 128.63 128.43 +0.16% +1.35% +128.7700 +128.4500
Dollar/Swiss CHF=EBS 0.9395 0.9401 -0.06% +6.19% +0.9399 +0.9395
Sterling/Dollar GBP=D3 1.3758 1.3733 +0.21% +0.72% +1.3765 +1.3730
Dollar/Canadian CAD=D3 1.2589 1.2609 -0.15% -1.13% +1.2609 +1.2587
Aussie/Dollar AUD=D3 0.7604 0.7581 +0.33% -1.12% +0.7607 +0.7579
NZ NZD=D3 0.6972 0.6954 +0.32% -2.85% +0.6976 +0.6951
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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