* Monday's risk-averse moves unwind as Yellen urges spending
* Euro gains on bright German investor sentiment, Italian
politics
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SINGAPORE, Jan 20 (Reuters) - The U.S. dollar nursed losses
on Wednesday and the euro hung on to gains as investors' mood
brightened in the wake of a better-than-expected sentiment
survey in Germany and big spending talk from U.S. Treasury
Secretary nominee Janet Yellen.
Yellen's comments, urging lawmakers to "act big" on
coronavirus relief and not worry too much about debt, helped
assuage this week's risk averse tone and knocked the dollar
index =USD from a one-month high. The euro EUR=EBS bounced off support around $1.2050,
lifting about 0.4% on the dollar overnight to hit $1.2145,
following a ZEW investor sentiment survey that beat forecasts
and the Italian government surviving a confidence vote.
It held near that level in Asia, and the risk-sensitive
Australian and New Zealand dollars edged up in morning trade to
also hold modest overnight rises. The Aussie AUD=D3 was last
up 0.2% at $0.7707 and the kiwi NZD=D3 up 0.1% to $0.7122.
"The stimulatory bias of the incoming Biden administration's
economic policy is again at the centre of market attention," ANZ
analysts said in a note to clients.
"However, seesawing between expectations of reflation and
current soft economic data will probably continue for a while
longer," they added, limiting upside for currencies such as the
kiwi.
Joe Biden is inaugurated as U.S. President at noon in
Washington on Wednesday (1700 GMT), though traders are more
focused on his policies than the ceremony.
The safe-haven yen JPY=EBS was sold with the improvement
in sentiment and briefly eased past 104 per dollar, as well as
falling against other major currencies. It last traded at 103.84
per dollar.
Sterling GBP= found support from the Bank of England's
chief economist's prediction that Britain's economy begins to
"recover at a rate of knots" in the second half of the year, and
extended overnight gains slightly to $1.3649. The Chinese yuan CNH= clung to modest gains in offshore
trade at 6.4757 to the dollar ahead of a monthly interest rate
fixing where traders expect no change in either one-year or
five-year loan prime rates. Later on Wednesday Malaysia's central bank meets, with a
decision due at 0700 GMT. Nine of 15 economists polled by
Reuters expect it will cut benchmark interest rates to historic
lows. The Bank of Canada is expected to hold rates steady when it
announces policy at 1500 GMT.
========================================================
Currency bid prices at 8:40AM in Singapore (0040 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2143 $1.2129 +0.10% -0.63% +1.2147 +1.2125
Dollar/Yen JPY=D3 103.8500 103.9100 -0.02% +0.58% +103.9100 +103.8900
Euro/Yen EURJPY= 126.09 126.00 +0.07% -0.65% +126.1300 +125.9800
Dollar/Swiss CHF=EBS 0.8878 0.8885 -0.10% +0.33% +0.8887 +0.8877
Sterling/Dollar GBP=D3 1.3644 1.3636 +0.07% -0.12% +1.3649 +1.3632
Dollar/Canadian CAD=D3 1.2719 1.2732 -0.07% -0.09% +1.2735 +1.2722
Aussie/Dollar AUD=D3 0.7714 0.7696 +0.22% +0.27% +0.7714 +0.7693
NZ NZD=D3 0.7129 0.7117 +0.18% -0.71% +0.7131 +0.7120
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>