(Adds German data, new comment, chart, updates prices,)
* German business morale jumps
* Dollar index flat
* Aussie, kiwi make three-year peaks
* Sterling gains as lockdown finish-line comes in to view
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Julien Ponthus
LONDON, Feb 22 (Reuters) - The U.S. dollar pared losses
after reaching multi-year lows against sterling and the
Australian dollar on Monday as traders focused on whether
vaccine progress, expectations for faster economic growth and
inflation would push bond yields higher.
Yields on 10-year U.S. US10YT=RR and German government
bonds touched one-year and eight-month highs respectively before
retreating as Europe's trading session advanced to midday.
The U.S. dollar index =USD rebounded from lows hit during
the night but gradually slowed and was broadly unchanged, down
0.03% at 90.255.
"Monday mornings don't necessarily tell me much", said Kit
Juckes a strategist at Societe Generale, adding that a clearer
trend might emerge once trading resumes in New York.
"The market is still short in dollars", he said, pointing
out to the likelihood of a "shake out" should U.S. yields
continue their rise towards 1.5%.
The euro EUR=EBS gained against the dollar, rising 0.17%
to $1.2138 after data showed German business morale rising more
than expected in February thanks notably to the resilient
industrial sector. were also waiting for a speech at 1345 GMT by
European Central Bank President Christine Lagarde.
Commerzbank analyst Ulrich Leuchtmann argued that much at
stake for the relationship between the euro and the dollar lies
in the growth differential between the two economies.
"Where EUR-USD is going to go medium-term depends on whether
the U.S. economy really will be able to achieve a stronger
post-lockdown boom than Europe", he said. He expects the common
currency to suffer in that regard in the first half of 2021.
The British pound GBP=D3 held the $1.40 line after
reaching 1.4050, its highest since April 2018, as Prime Minister
Boris Johnson announced a path out of lockdowns on the back of
rapid vaccinations.
The Aussie AUD=D3 rose as much as 0.5% to an
almost-three-year high of $0.7908 before letting the dollar come
back to 0.7889.
The kiwi NZD=D3 hit $0.7338, also its best since early
2018, helped by S&P's upgrade of New Zealand's sovereign credit
ratings by a notch, but also saw the U.S. dollar pare some
losses. In the cryptocurrency market, bitcoin BTC=BTSP eased from
the record high of $58,354.14 it reached during the weekend,
retreating to $53,441.
The most popular cryptocurrency had almost doubled
year-to-date and reached a market capitalisation of $1 trillion
on Friday, boosted by gaining acceptance among mainstream
investors and companies like Tesla Mastercard. Currency bid prices at 1228 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2134 $1.2118 +0.14% -0.68% +1.2145 +1.2092
Dollar/Yen JPY=D3 105.5650 105.4900 +0.05% +2.18% +105.8400 +105.5050
Euro/Yen EURJPY= 128.11 127.75 +0.28% +0.94% +128.2400 +127.7000
Dollar/Swiss CHF=EBS 0.8975 0.8965 +0.12% +1.45% +0.9023 +0.8962
Sterling/Dollar GBP=D3 1.4026 1.4001 +0.22% +2.71% +1.4051 +1.3980
Dollar/Canadian CAD=D3 1.2626 1.2619 +0.06% -0.84% +1.2653 +1.2581
Aussie/Dollar AUD=D3 0.7886 0.7868 +0.25% +2.53% +0.7908 +0.7855
NZ NZD=D3 0.7317 0.7297 +0.29% +1.91% +0.7337 +0.7282
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
German IFO https://tmsnrt.rs/3pMf0kN
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