FOREX-Dollar poised for weekly losses on improving risk sentiment

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Eimi Yamamitsu
TOKYO, Nov 27 (Reuters) - The dollar held steady in thin
trade on Friday but was on track for weekly losses against a
basket of major currencies as it remained under pressure on
improving risk appetite.
U.S. markets were closed for the Thanksgiving holiday on
Thursday.
"Today will be another quiet day, with almost no catalyst to
move the market. The dollar, however, is broadly pressured on
month-end selling," said Shinichiro Kadota, senior strategist at
Barclays.
The U.S. dollar index was steady at 92.03 against a basket
of major currencies =USD , treading water around a near
three-month low of 91.84 it hit overnight.
The dollar has been under pressure this week, as riskier
currencies benefited from increased optimism over a string of
COVID-19 vaccines news reports and hopes for a more stable
period in U.S. politics.
While the greenback will remain under pressure in near term
due to prolonged "risk-on" sentiment led by vaccine hopes,
Barclay's Kadota said the market expects the currency to firm in
mid-term.
"When looking at how economies have rebounded in the July
quarter, the United States grew and made a strong rebound. In a
scenario where vaccines becomes gradually available next year
and economies return to normal, the U.S. will probably be one of
the most resilient among developed countries. And I think that
will create a dollar-favourable environment," he said.
Dovish messaging from the European Central Bank's chief
economist and the minutes from last month's meeting provided
further confirmation of widely expected stimulus at its December
gathering.
The central bank's minutes from its October meeting showed
policymakers agreed they could not afford to seem complacent
during the second wave of the coronavirus, opting instead to lay
the groundwork for more stimulus. The ECB's chief economist Philip Lane had also warned that
tolerating "a longer phase of even lower inflation" would hurt
consumption and investment as well as cementing expectations for
low price growth in the future. The euro was little changed against the greenback at $1.1905
EUR=EBS , away from a more than two months-high of $1.1941 it
marked on Thursday.
Sterling GBP=D3 fetched $1.3349, trading near a
three-month high of $1.3399 it touched on Thursday, as market
participants look for progress on Brexit talks.
The European Union chief negotiator Michel Barnier will talk
on Friday with some of the bloc's ministers responsible for
fisheries to discuss the state of play in the trade discussions
with Britain, EU official said. The Australian dollar firmed at 0.73605 AUD=D3 , having
climbed to a near three-month high of 0.7374 on Thursday.
Meanwhile, the Kiwi NZD=D3 changed hands at 0.7006 against
the greenback.
Bitcoin BTC=BTSP , the most popular cryptocurrency, last
fetched $17,271.86 in a volatile trade. Overnight, the
cryptocurrency plunged as much as 13% to its lowest since Nov.
16, having rallied close to its all-time high of $19,666.