FOREX-U.S. dollar gains as steep global economic slump 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
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(New throughout, updates prices, market activity and comments; new byline, changes dateline; previous
LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 1 (Reuters) - The dollar advanced on Wednesday, with markets staring at what looked
likely to be one of the worst economic contractions in decades as the world confronts the coronavirus
pandemic.
The greenback 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's status as the world's reserve currency makes it a natural safe haven, as evidence builds
of a massive global economic downturn.
"We saw broad dollar-buying flows into month-end, but today's flows are more haven-like," said Erik
Bregar, head of FX strategy at Exchange Bank of Canada in Toronto.
The game changer, he added, was U.S. President Donald Trump's dire press briefing late Tuesday, where
he warned Americans of "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. "It feels like the U.S. is not doing enough to curb the spread," Bregar said.
In mid-morning trading, the U.S. dollar index was up 0.6% at 99.550 =USD . It remained below
multi-year peaks reached last month, before the Federal Reserve pumped more dollars into the system.
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 really 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, after advancing by an unrevised 183,000 in February.
Economists polled by Reuters had forecast private payrolls falling by 150,000 jobs in March. German and British factory output gauges on Tuesday slumped to multi-year lows, painting a similarly
bleak picture to manufacturing data from Japan and South Korea overnight. European and U.S. equity markets tumbled in morning trading, following from falls in Asia.
Analysts said coordinated action by central banks to boost dollar supply has helped calm extreme
volatility, but money markets still need time to settle.
The euro fell nearly 1% against the dollar, dropping to $1.0924 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 down 0.4% at $1.2370. GBP=D3 .
Against the safe-haven yen, however, the dollar was down 0.3% at 107.29 yen JPY=EBS . But yen
strength may not last long as Japan is also reeling from the crisis. Currency bid prices at 9:50AM (1350 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0925 $1.1029 -0.94% -2.54% +1.1039 +1.0919
Dollar/Yen JPY= 107.2200 107.5300 -0.29% -1.51% +107.9400 +107.1800
Euro/Yen EURJPY= 117.15 118.66 -1.27% -3.94% +118.8800 +117.1600
Dollar/Swiss CHF= 0.9666 0.9608 +0.60% -0.12% +0.9682 +0.9602
Sterling/Dollar GBP= 1.2414 1.2418 -0.03% -6.37% +1.2441 +1.2332
Dollar/Canadian CAD= 1.4157 1.4059 +0.70% +9.02% +1.4271 +1.4062
Australian/Doll AUD= 0.6068 0.6135 -1.09% -13.57% +0.6158 +0.6040
ar
Euro/Swiss EURCHF= 1.0562 1.0603 -0.39% -2.67% +1.0606 +1.0558
Euro/Sterling EURGBP= 0.8801 0.8883 -0.92% +4.08% +0.8913 +0.8795
NZ NZD= 0.5912 0.5954 -0.71% -12.23% +0.5986 +0.5881
Dollar/Dollar
Dollar/Norway NOK= 10.2731 10.4003 -1.22% +17.03% +10.4940 +10.2700
Euro/Norway EURNOK= 11.2240 11.4810 -2.24% +14.10% +11.5285 +11.2193
Dollar/Sweden SEK= 10.0140 9.8780 +0.09% +7.13% +10.0791 +9.8972
Euro/Sweden EURSEK= 10.9448 10.9352 +0.09% +4.54% +11.0075 +10.9196