July 8, 2020 / 6:25 PM / a month ago

FOREX-U.S. dollar slides to two-week low

    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E
    * Euro extends gains vs dollar
    * Commodity currencies rise vs dollar
    * Sterling rises after Britain unveils stimulus package

 (Adds new comment, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, July 8 (Reuters) - The dollar dropped to two-week lows on Wednesday, showing reduced
safe-haven appeal for now, as U.S. tech stocks rallied and commodity prices firmed, even as sentiment
remained cautious amid a resurgence of new coronavirus cases globally, particularly in the United States.
    The euro, meanwhile, rose to three-week highs against the dollar, while commodity currencies such as
the Australian, New Zealand, and Canadian dollars gained.
    The NASDAQ index gained 0.8% on the day, reversing Tuesday's loss, feeding the currency
market's risk appetite.
    The dollar is typically seen as a safe haven for investors to park their cash each time a resurgence
of the pandemic seems to threaten a global economic recovery.
    "Investors are growing more confident that this stock market rally is not going to end any time soon,"
said Edward Moya, senior market analyst, at OANDA in New York. "And that's pretty much based on
expectations that you're going to continue to see a strong global stimulus response over the coming weeks
and months."
    That said, the U.S. Centers for Disease Control and Prevention (CDC) on Wednesday reported 2,982,900
cases of new coronavirus, an increase of 50,304 cases from its previous count. It said the number of
deaths had risen by 932 to 131,065.
    Against a basket of its rivals, the dollar dropped 0.5% to 96.448 in early afternoon trading.
    A decline in the dollar earlier this week set off the so-called "Death Cross," a bearish technical
formation that occurs when the 50-day moving average crosses below the 200-day moving average.
    Past occurrences of the Death Cross have been followed by dollar weakness eight out of nine times
since 1980 when the 200-day moving average has been declining, as it is now, analysts at BofA Securities
    The euro rose 0.6% versus the dollar to $1.1338.
    Commodity currencies, which tend to thrive in times of increased risk appetite, also gained against
the dollar.
    The Australian dollar rose 0.5% against the greenback  to US$0.6977. The New Zealand dollar
 grew 0.4% to US$0.6572, with the Canadian dollar rising 0.7% to C$1.3514 per U.S.
    Against the safe-haven yen, the dollar was down on the day at 107.25 yen. The greenback was
also 0.5% lower versus the Swiss franc at 0.9381 franc.
    Sterling shrugged off earlier losses and rose 0.6% to $1.2588, after British finance minister
Rishi Sunak promised 30 billion pounds ($37.7 billion) to head off an unemployment crisis by paying
companies to bring back furloughed workers and cutting taxes for hospitality firms and homebuyers.

    Earlier, the onshore yuan was stable at 7.0129, halting a two-day rally, after the Chinese
central bank's daily midpoint for the currency was set at a weaker than expected level.
    Currency bid prices at 2:10PM (1810 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1332        $1.1270     +0.55%         +1.09%      +1.1351     +1.1264
 Dollar/Yen       JPY=        107.2200       107.5100    -0.27%         -1.51%      +107.7000   +107.2400
 Euro/Yen         EURJPY=     121.53         121.20      +0.27%         -0.34%      +121.8800   +121.1500
 Dollar/Swiss     CHF=        0.9380         0.9421      -0.44%         -3.08%      +0.9432     +0.9371
 Sterling/Dollar  GBP=        1.2615         1.2540      +0.60%         -4.86%      +1.2617     +1.2510
 Dollar/Canadian  CAD=        1.3506         1.3602      -0.71%         +4.00%      +1.3623     +1.3504
 Australian/Doll  AUD=        0.6978         0.6946      +0.46%         -0.61%      +0.6980     +0.6928
 Euro/Swiss       EURCHF=     1.0634         1.0623      +0.10%         -2.03%      +1.0640     +1.0616
 Euro/Sterling    EURGBP=     0.8982         0.8987      -0.06%         +6.25%      +0.9010     +0.8976
 NZ               NZD=        0.6575         0.6546      +0.44%         -2.39%      +0.6576     +0.6531
 Dollar/Norway    NOK=        9.3986         9.4714      -0.77%         +7.07%      +9.5144     +9.3889
 Euro/Norway      EURNOK=     10.6534        10.7055     -0.49%         +8.29%      +10.7310    +10.6510
 Dollar/Sweden    SEK=        9.1765         9.2630      -0.37%         -1.83%      +9.2737     +9.1694
 Euro/Sweden      EURSEK=     10.4030        10.4416     -0.37%         -0.63%      +10.4470    +10.3998
 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Jonathan Oatis and Nick Zieminski)
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