(Adds stock move, updates COVID-19 tally and dollar prices)
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Karen Brettell
NEW YORK, Aug 24 (Reuters) - The dollar edged higher on Monday before Federal Reserve Chairman Jerome
Powell this week will give a highly anticipated speech about the U.S. central bank's policy framework
review.
A sharp dollar selloff against the euro has paused, with the greenback getting a boost on Friday after
data showed a recovery in U.S. business conditions, while European data showed slowing improvement.
However, "we're just kind of moving sideways," said Erik Nelson, a macro strategist at Wells Fargo in
New York. "Positions have gotten stretched, especially in the euro, and I think you need another pullback
before we can get another big leg higher."
Powell's speech on Thursday will likely be the next major dollar driver, with investors watching to
see if he signals that the U.S. central bank will shift its inflation target to an average. This would
allow inflation to rise higher than previously before the Fed raises rates, making up for decades of
benign price increases. "I think we could get some pullback in foreign currencies and dollar strength if Powell doesn't
really, really strongly come out and say we're doing inflation average targeting," Nelson said.
The euro EUR= fell 0.06% against the dollar to $1.1788, after hitting a more-than-two-year high of
$1.1965 on Friday before the data.
The dollar index against a basket of major currencies =USD gained 0.12% to 93.31.
The dollar was also boosted by improving risk appetite after the U.S. Food & Drug Administration (FDA)
on Sunday said it authorized the use of blood plasma from patients who have recovered from COVID-19 as a
treatment for the disease. The S&P 500 and Nasdaq scaled new highs on Monday. .N
The number of new cases of the novel coronavirus reported in the United States fell 17% last week, the
fifth straight week of declines, according to a Reuters tally of state and county reports. Republicans will make their case this week that the U.S. economic and political future depends on the
re-election of Donald Trump at a four-day party convention that will feature the president speaking every
night. "We hope to get some firm direction when it comes to potential economic proposals that the Trump
administration may pursue if Trump secures a second term," analysts at NatWest Markets said on Monday in a
report.
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Currency bid prices at 3:31PM (1931 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1788 $1.1795 -0.06% +5.16% +1.1849 +1.1785
Dollar/Yen JPY= 105.9700 105.7800 +0.18% -2.65% +105.9800 +105.7000
Euro/Yen EURJPY= 124.93 124.79 +0.11% +2.44% +125.3400 +124.7000
Dollar/Swiss CHF= 0.9116 0.9115 +0.01% -5.81% +0.9127 +0.9076
Sterling/Dollar GBP= 1.3057 1.3087 -0.23% -1.52% +1.3148 +1.3054
Dollar/Canadian CAD= 1.3232 1.3175 +0.43% +1.89% +1.3238 +1.3134
Australian/Doll AUD= 0.7157 0.7161 -0.06% +1.92% +0.7204 +0.7153
ar
Euro/Swiss EURCHF= 1.0749 1.0752 -0.03% -0.95% +1.0775 +1.0745
Euro/Sterling EURGBP= 0.9030 0.9009 +0.23% +6.81% +0.9044 +0.9002
NZ NZD= 0.6523 0.6539 -0.24% -3.16% +0.6564 +0.6523
Dollar/Dollar
Dollar/Norway NOK= 9.0127 9.0086 +0.05% +2.67% +9.0326 +8.9586
Euro/Norway EURNOK= 10.6275 10.6290 -0.01% +8.03% +10.6565 +10.6057
Dollar/Sweden SEK= 8.7963 8.7928 -0.02% -5.90% +8.8015 +8.7426
Euro/Sweden EURSEK= 10.3717 10.3737 -0.02% -0.93% +10.3830 +10.3507