* Biden to give details of "trillions" in spending Thursday
* Many analysts still expect dollar to resume declines
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Julien Ponthus
LONDON, Jan 14 (Reuters) - The dollar held above three-year
lows versus major peers on Thursday as expectations for
President-elect Joe Biden's fiscal stimulus pushed yields of
U.S. government bonds higher. The 10-year Treasury yield rose after CNN reported the
stimulus will be around $2 trillion, adding support for the
dollar.
In early European morning trading, the dollar index =USD
was little changed, up 0.04% at 90.320, as investors waited for
Biden to give details later today of a plan for "trillions" of
dollars in pandemic relief.
The dollar has risen in four of the past five trading
sessions as the prospect of more stimulus has weighed on U.S.
government bonds, sending the benchmark Treasury yield above 1%
for the first time since March.
Expectations are already running high for the stimulus, but
many analysts believe the spending push has already been priced
in.
"We feel the fiscal cat is out of the bag already: it would
take a lot to surprise markets after the re-pricing seen last
week", ING analysts said. "The scope for the reflation trade to
restart on the back of this announcement alone is limited."
Moreover, the currency's recent recovery is threatened by a
build-up of bearish dollar positions.
FX speculators have been net short the dollar since
mid-March, as investors' surging appetite for riskier assets
hurt demand for the greenback.
Because U.S. stimulus supports risk sentiment, it could
weigh on the dollar, which is considered a safe haven.
The euro EUR=EBS slipped 0.05% to $1.214 after sliding
0.4% on Wednesday.
The dollar advanced 0.13% to 104.02 yen JPY=EBS .
Bitcoin BTC=BTSP held on to 10% gains made on Wednesday
after sliding almost $12,000 from last week's record high of
$42,000. It rose 3% to $38,860 on Thursday, up from as low as
$30,261.13 on Jan. 11.
Interest in the cryptocurrency has been soaring as
institutional investors began buying heavily, viewing it as both
an inflation hedge and as exposed to gains if it becomes more
widely adopted.
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Currency bid prices at 8:31AM (831 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2146 $1.2159 -0.10% -0.59% +1.2172 +1.2135
Dollar/Yen JPY=D3 104.0400 103.8850 +0.17% +0.75% +104.1950 +103.8150
Euro/Yen EURJPY= 126.37 126.28 +0.07% -0.43% +126.4900 +126.2300
Dollar/Swiss CHF=EBS 0.8875 0.8875 -0.02% +0.29% +0.8892 +0.8869
Sterling/Dollar GBP=D3 1.3663 1.3637 +0.20% +0.01% +1.3678 +1.3620
Dollar/Canadian CAD=D3 1.2674 1.2701 -0.21% -0.47% +1.2706 +1.2670
Aussie/Dollar AUD=D3 0.7753 0.7734 +0.26% +0.80% +0.7764 +0.7729
NZ NZD=D3 0.7189 0.7175 +0.24% +0.15% +0.7206 +0.7173
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
dollar https://tmsnrt.rs/3oMz2fE
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