FOREX-U.S. dollar gains as global recession looms

* Trump comments on Tuesday push investors to safe havens
* Euro, sterling and most other major currencies tumble
* U.S. ADP private jobs data not fully reflects virus impact
* U.S. manufacturing activity contracts in March
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 1 (Reuters) - The dollar advanced on Wednesday, with markets bracing for what is
shaping up to be one of the worst economic contractions in decades as the world confronts the coronavirus
pandemic.
The greenback, the world's leading global reserve currency, rose against the euro, sterling and most
other major currencies as selling in global shares highlighted growing risks from the pandemic that has
shown little sign of easing.
"The dollar does well in global recessions," said Momtchil Pojarliev, head of currencies at BNP Asset
Management in New York. "We think this virus is going to cause a global recession so the dollar will do
well."
Markets were spooked after U.S. President Donald Trump's dire press briefing late Tuesday, where he
warned Americans of a "painful" two weeks ahead in fighting the coronavirus even with strict social
distancing measures.
White House coronavirus coordinator Deborah Birx displayed charts demonstrating data and modeling that
showed an enormous jump in deaths to a range of 100,000 to 240,000 people from the virus in the coming
months. In afternoon trading, the U.S. dollar index was up 0.5% at 99.528 =USD .
Analysts said coordinated action by central banks to boost dollar supply has helped calm extreme
volatility, but money markets still need time to settle.
U.S. data showing private sector jobs lost for the month of March were much lower than expected, did
not really change sentiment, as the survey was conducted in mid-March and did not capture the full impact
of the coronavirus.
The ADP National Employment Report on Wednesday showed private payrolls fell by 27,000 jobs last
month, the first decline since September 2017, compared with forecasts of 150,000 job losses. Another piece of data showed that U.S. manufacturing activity contracted less than expected in March,
but disruptions caused by the coronavirus pandemic pushed new orders received by factories to an 11-year
low, reinforcing economists' views that the economy was in recession.
Artur Baluszynski, head of research at Henderson Rowe, said he expects the new orders' index to start
feeding through to the main index next month.
"With almost every segment of the global economy shutting down one after another, first due to supply
and now due to demand shocks, these numbers will get worse and worse," he added.
The euro, meanwhile, fell 0.8% against the dollar, dropping to $1.0947 EUR=EBS .
A slew of currencies - including the Australian, New Zealand and Canadian dollars, along with the
South African rand - were down around 1% versus the greenback AUD=D3 NZD=D3 CAD= ZAR= . Sterling
fared slightly better, last little changed at $1.2405. GBP=D3 .
Against the safe-haven yen, however, the dollar was down 0.4% at 107.12 yen JPY=EBS . But yen
strength may not last long as Japan is also reeling from the crisis. Currency bid prices at 4:12PM (2012 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0961 $1.1029 -0.62% -2.22% +1.1039 +1.0904
Dollar/Yen JPY= 107.0700 107.5300 -0.43% -1.64% +107.9400 +106.9300
Euro/Yen EURJPY= 117.37 118.66 -1.09% -3.76% +118.8800 +116.9600
Dollar/Swiss CHF= 0.9656 0.9608 +0.50% -0.23% +0.9691 +0.9602
Sterling/Dollar GBP= 1.2399 1.2418 -0.15% -6.49% +1.2441 +1.2332
Dollar/Canadian CAD= 1.4196 1.4059 +0.97% +9.32% +1.4271 +1.4062
Australian/Doll AUD= 0.6076 0.6135 -0.96% -13.46% +0.6172 +0.6040
ar
Euro/Swiss EURCHF= 1.0587 1.0603 -0.15% -2.44% +1.0606 +1.0558
Euro/Sterling EURGBP= 0.8841 0.8883 -0.47% +4.58% +0.8913 +0.8787
NZ NZD= 0.5915 0.5954 -0.66% -12.19% +0.5986 +0.5881
Dollar/Dollar
Dollar/Norway NOK= 10.4588 10.4003 +0.56% +19.14% +10.5229 +10.2700
Euro/Norway EURNOK= 11.4685 11.4810 -0.11% +16.57% +11.5285 +11.2193
Dollar/Sweden SEK= 10.0356 9.8780 +0.45% +7.36% +10.0855 +9.8972
Euro/Sweden EURSEK= 10.9847 10.9352 +0.45% +4.92% +11.0150 +10.9196