FOREX

FOREX-Dollar eases amid recovery in risk appetite with Fed meeting in focus – Reuters


    * Most majors set to end week flat as COVID-19 fears abate
    * Euro weaker after ECB pledges low rates for longer
    * Aussie set for fourth weekly slide as lockdowns weigh

    By Kevin Buckland
    TOKYO, July 23 (Reuters) - The dollar was set to end the
week close to where it started following a roller-coaster week
in which currencies were tossed around by shifting risk
appetite, with the market's focus now shifting to next week's
U.S. Federal Reserve meeting.
    The dollar index is on track to advance 0.1% for the
week, having barely budged overnight to stand at 92.782 in Asia
on Friday.
    That was, however, off the 3-1/2-month high of 93.194 hit on
Wednesday as strong Wall Street earnings helped investors regain
some of the confidence lost to earlier worries the Delta variant
of the coronavirus could derail the global recovery.
    The safe-harbour yen weakened less than 0.1%
during the week to trade at 110.135.
    Meanwhile, the euro was 0.2% lower over the period
at $1.1779 after the European Central Bank pledged to keep
interest rates at record lows for even longer, as widely
expected.
    The uptrend in the dollar index is "showing tentative signs"
of stalling around 93.0, "but its overall resilience regardless
of the shifting risk mood and the ECB's shift to a more
structurally dovish policy stance suggest retracements will
likely be limited to the 91.5-92.0 zone," Westpac strategists
wrote in a client note.
    "The U.S. is better positioned than others to withstand the
spread of the delta variant thanks to its earlier strong
vaccination drive."
    The British pound recovered from losses as steep as
1.3% for the week to trade about 0.1% higher at $1.37755, buoyed
by the recovery in risk sentiment even with COVID-19 cases
broadly on the rise.
    However, Australia's dollar - often viewed as a
proxy for risk appetite - was still headed for a 0.2% drop,
which would be a fourth straight weekly decline. 
    With half the Australian population languishing under
lockdown, economists speculate the country's central bank could
increase stimulus rather than decreasing it at its next policy
meeting.
    "The balance of risks point to more weakness in AUD in the
near term," Commonwealth Bank of Australia strategist Joseph
Capurso wrote in a client note.
    
========================================================
    Currency bid prices at 0115 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.1778        $1.1771     +0.07%         -3.59%      +1.1781     +1.1767
 Dollar/Yen                   110.1500       110.1750    +0.00%         +6.67%      +110.1550   +0.0000
 Euro/Yen         <EURJPY=EB  129.73         129.65      +0.06%         +2.21%      +129.7500   +129.6300
                  S>                                                                            
 Dollar/Swiss                 0.9188         0.9192      -0.05%         +3.84%      +0.9192     +0.9187
 Sterling/Dollar              1.3770         1.3769      +0.02%         +0.81%      +1.3779     +1.3760
 Dollar/Canadian              1.2560         1.2555      +0.01%         -1.39%      +1.2566     +1.2552
 Aussie/Dollar                0.7382         0.7384      +0.01%         -4.00%      +0.7400     +0.7378
 NZ                           0.6982         0.6975      +0.12%         -2.76%      +0.6988     +0.6970
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ 
    

    
 (Reporting by Kevin Buckland; Editing by Sam Holmes)
  

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