FOREX-US dollar set for weekly gain amid worries about a recovery

* Aussie dollar, New Zealand dollar not doing well in May
* Sterling falls, reflecting Brexit transition worries
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Olga Cotaga
LONDON, May 15 (Reuters) - The U.S. dollar was set for a
weekly gain on Friday and the Australian dollar for a 1% drop
this week as the threat of a second wave of coronavirus
infections rattled investors.
As hopes faded for a quick global recovery from the
pandemic, traders unloaded the trade-sensitive Aussie and moved
into safer assets such as the U.S. dollar.
"The risk is clear that the opening of economies takes
longer to materialise vs what markets are discounting," said
Carl Hammer, head of macro and FICC research at SEB.
One key trigger for investor sentiment on Friday is the
flash estimate release of the Germany gross domestic product
data at 0800 GMT. Economists polled by Reuters expect Europe's
largest economy to shrink by 2.2% in the first quarter, less
than other euro zone states.
"However, data published since the first estimate has been
generally weaker than expected and we see a risk of the first
estimates being revised down for several countries," Hammer
said.
The euro was last neutral versus the dollar at $1.0796
EUR=EBS , set for a 0.3% weekly gain.
The Australian dollar AUD=D3 fell 0.2% 0.6454, on course
for a 1.1% decline since Monday. The New Zealand dollar also
fell by 0.2% NDZ=D3 .
The yen JPY=EBS was steady at 107.16 per dollar, but has
ground lower this week as U.S. Federal Reserve officials talked
down the prospect of negative rates, also buoying the dollar.
The antipodean pair, like other majors, have struggled for
traction in May as investors and authorities weigh optimism
about easing virus containment measures against the risk of more
infections and the sheer scale of economic damage already done.
Elsewhere, the British pound GBP=D3 remained under
pressure, falling 0.3% to $1.2202, after touching a five-week
low of $1.2161 overnight, following the British government's
reiterating its refusal to extend the Brexit transition deadline
beyond December.