FOREX-Dollar set for biggest weekly gain in a month as stimulus talks falter

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

By Iain Withers
LONDON, Oct 16 (Reuters) - The dollar paused on Friday but
remained on track for its biggest weekly gain in a month amid
growing market caution over a global surge in coronavirus cases
and fading prospects of a U.S. stimulus package before the Nov.
3 election.
Fresh curbs to combat COVID-19 have been introduced across
Europe while the U.S. Midwest is also battling record spikes in
new cases as data shows the country's economic recovery is
losing steam. Investors will get a further indicator of the health of the
U.S. economy with retail sales data due later on Friday. Relief
plans remain bogged down in a three-way negotiation between the
White House, Senate Republicans and House Democrats.
The dollar and Japanese yen are both on track for weekly
gains on investor appetite for safe haven assets, of 0.7% and
0.4% respectively. =USD JPY=EBS
The greenback hugged a tight range in morning trading in
Europe on Friday, with the dollar index last down 0.1%. The euro
strengthened slightly, last up 0.1%. EUR=EBS
On a monthly basis, the dollar index is up 0.7%, its biggest
rise since end-September.
"The fight against corona is not a sprint but a marathon and
that is becoming increasingly clear on the FX market too," said
Esther Reichelt, FX analyst at Commerzbank, in a note.
"The winners will be all those economies and their
respective currencies that do best at overcoming the economic
challenges posed by the pandemic...Until then, the FX market
will be dominated by risk considerations."
Sterling gained around a third of a percent as markets
waited for British Prime Minister Boris Johnson to set out his
response to the European Union's demand for more concessions in
Brexit talks. GBP=D3
He had previously set Oct. 15 as a deadline for a deal to be
reached. Britain's Foreign Secretary Dominic Raab said on Friday
there was still a trade deal "to be done". <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
FX graphic https://tmsnrt.rs/3j2X6qR
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