FOREX-Dollar and yen hold advantage as risk aversion grows

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Risk appetite fades as virus cases rise again
* Aussie falls after data on jobs market
* Pound in narrow range before BOE

By Stanley White
TOKYO, June 18 (Reuters) - The dollar and the yen edged
higher on Thursday as growing concerns about a rise in
coronavirus cases underpinned safe-haven demand for both
currencies.
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 put in place by the
government to contain the outbreak.
The British pound traded in a narrow range before a Bank of
England meeting where policymakers are expected to expand
quantitative easing in the face of a sputtering economy and
rocky trade negotiations with the European Union.
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 about the risks of
re-opening economic activity before a vaccine has been
developed.
"Upside for U.S. stocks and other risk assets has dwindled
because more people are talking about a second wave of virus
infections," said Junichi Ishikawa, senior foreign exchange
strategist at IG Securities in Tokyo.
"This supports the dollar and the yen because they are both
safe havens. The pound has its own problems. The British economy
is not in good shape and a hard Brexit remains a risk."
The dollar traded at $1.1256 per euro EUR=EBS on Thursday
following a 0.2% gain in the previous session.
The greenback bought 0.9493 Swiss franc CHF=EBS , holding
onto a 0.3% gain on Wednesday.
The yen JPY=D3 edged up to 106.86 against the dollar.
Sterling GBP=D3 inched down to $1.2557. Against the euro,
the pound was little changed at 89.65 pence EURGBP= .
The onshore yuan CNY=CFXS rose slightly to 7.0735 per
dollar after China's top policymakers vowed to keep cash
abundant in financial markets and further support growth.
The Australian dollar AUD=D3 fell to a session low
of$0.6838, extending a pull back from a one-year high reached
last week after data showed the Australian economy shed a
quarter of a million jobs and the jobless rate jumped to the
highest in almost two decades in May. Across the Tasman Sea, the New Zealand dollar NZD=D3 also
fell to $0.6447.
The yen rose against the Aussie AUDJPY= and the kiwi
NZDJPY= , reinforcing the heightened risk aversion.
The British pound is in focus as traders brace for the Bank
of England's policy meeting later in the day.
The BOE is expected to boost its quantitative easing
programme by 100 billion pounds ($125 billion), with some
analysts eyeing an even larger increase amid concerns about the
economic outlook. Britain is seeking a free trade agreement with the EU, which
it left on Jan. 31, but negotiators have so far made little
progress, raising the risk both sides will fail to agree a deal
before a deadline at the end of the year.
($1 = 7.0886 Chinese yuan renminbi)