FOREX-Coronavirus second wave fears boost yen; Aussie dollar falls after data

* Euro sheds nearly 1% in 6 days
* Dollar index little changed
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Olga Cotaga
LONDON, June 18 (Reuters) - The Japanese yen strengthened
slightly on Thursday as growing concerns about a rise in new
coronavirus cases underpinned safe-haven demand for the
currency, while the U.S. dollar was little changed versus the
euro.
Some 400 workers have tested positive for the new
coronavirus at an abattoir in northern Germany, prompting the
closure of local schools and an urgent investigation, officials
said on Wednesday. More than 8.36 million people have been reported to be
infected by the novel coronavirus globally and 447,985​ have
died, a Reuters tally found. A surge in new coronavirus infections in several U.S. states
and the imposition of travel curbs in Beijing to stop a new
outbreak there have served as a reminder of the risks of
re-opening economic activity before a vaccine has been
developed.
The Japanese yen was last trading up 0.1% at 106.88
JPY=EBS after touching a six-day high of 106.70 in the Asian
trading session.
"FX markets are mildly risk-off overnight, with only light
news flow. Beyond continuing concerns of a COVID-19 second wave,
AUD and NZD underperformance is being compounded by weak
domestic data," said Adam Cole, chief currency strategist at RBC
Capital Markets.
The Australian dollar fell after data showed the economy
shed twice as many jobs as expected in May, highlighting the
damage caused by lockdown restrictions imposed by the government
to contain the outbreak. The Aussie dollar was last down 0.2% at 0.6864 AUD=D4 .
An index tracking the dollar against a basket of currencies
=USD was unchanged at 97.03.
The euro was also little changed against the greenback at
$1.1249 EUR=EBS .
The common currency has lost nearly 1% of its value in less
than a week as investors questioned whether the European Union
would be able to pass the ambitious stimulus plan as proposed by
the European Commission given that some countries are against
giving the aid as grants.
"It would seem as if euro/dollar has found its new comfort
zone in the area of 1.12-1.14. Only the political front might
provide some momentum," said Thu Lan Nguyen, a currency analyst
at Commerzbank.
Elsewhere, the British pound traded in a narrow range before
a Bank of England meeting when policymakers are expected to
expand quantitative easing in the face of a weakening economy
and tough trade negotiations with the EU.
The BOE is expected to boost its quantitative easing
programme by 100 billion pounds ($125 billion), with some
analysts predicting an even larger increase. Sterling was last 0.2% lower at $1.2532 GBP=D3 and 0.3%
lower against the euro at 89.80 pence EURGBP=D3 .