* German ZEW economic survey boosts euro amid thin liquidity
* Fiscal stalemate, China tensions help put floor on dollar
* Dollar hits three-week high vs yen
* Oil currencies flourish as oil prices rise
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Aug 11 (Reuters) - The dollar fell from one-week highs and the euro topped $1.18 on Tuesday
as investors flocked to currencies that benefit from an improving global market outlook, with the S&P 500
nearing a record high and investor sentiment in Germany rising more than expected.
Aside from the euro, sterling and commodity-linked currencies such as the Australian and Canadian
dollars, as well as the Norwegian crown, gained against a broadly weakening dollar.
"Europe's political and economic situation in terms of dealing with the pandemic has become far more
stable than that of the United States," said Juan Perez, senior currency trader at Tempus Inc. in
Washington.
"No matter how gradual the recovery may seem in the U.S. and even though the economic indicators may
be positive, the reality is that the United States has not handled COVID well and the economic shutdown
has created an uncertainty difficult to move away from," he added.
In early afternoon trading, the dollar index =USD was down 0.1% at 93.503, sliding from a one-week
high hit earlier in the session.
The euro rose after the ZEW survey of economic sentiment rose to 71.5 from 59.3 the previous month,
far exceeding a forecast for 58.0 in a Reuters poll of economists. As a result, euro/dollar hit a high of $1.1809 EUR=EBS . The move was exacerbated by thin August
liquidity, said Jane Foley, senior currency analyst at Rabobank, and she was "suspicious" about how much
effect the ZEW survey had.
The euro was last up 0.2% at $1.1763.
"We need to wait 'til September to see clear direction coming from euro/dollar," Foley said.
The U.S. dollar has held a floor, despite losses, amid U.S.-China tensions and a stalemate between
Congress and the Trump administration over fiscal stimulus.
The U.S. currency, however, hit a three-week highs against the yen JPY=EBS , as U.S. 10-year Treasury
yields rose to four-week peaks US10YT=RR .
Congressional leaders and administration officials said on Monday they were ready to resume
negotiations on a coronavirus aid deal. It was unclear whether they could bridge their differences.
Meanwhile, China imposed sanctions on 11 U.S. citizens, including Republican lawmakers, following
Washington's sanctions on Hong Kong and Chinese officials. U.S. Treasury Secretary Steven Mnuchin said companies from China and other countries that do not
comply with accounting standards will be delisted from U.S. stock exchanges as of the end of 2021.
Market response to the U.S.-China conflict has been limited, but analysts say there could be
longer-term implications.
Sterling traded up 0.1% at $1.3088 GBP=D3 after Bank of England Deputy Governor Dave Ramsden said
the central bank will step up quantitative easing if the British economy struggles again. Currency bid prices at 1:50 PM (1750 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1760 $1.1736 +0.20% +4.91% +1.1807 +1.1723
Dollar/Yen JPY= 106.5600 105.9500 +0.58% -2.11% +106.5900 +105.9300
Euro/Yen EURJPY= 125.33 124.36 +0.78% +2.77% +125.5000 +124.3600
Dollar/Swiss CHF= 0.9156 0.9156 +0.00% -5.39% +0.9168 +0.9106
Sterling/Dollar GBP= 1.3087 1.3070 +0.13% -1.29% +1.3131 +1.3057
Dollar/Canadian CAD= 1.3276 1.3350 -0.55% +2.23% +1.3361 +1.3270
Australian/Doll AUD= 0.7160 0.7149 +0.15% +1.98% +0.7189 +0.7146
ar
Euro/Swiss EURCHF= 1.0771 1.0746 +0.23% -0.75% +1.0791 +1.0736
Euro/Sterling EURGBP= 0.8985 0.8977 +0.09% +6.28% +0.9010 +0.8970
NZ NZD= 0.6587 0.6589 -0.03% -2.21% +0.6626 +0.6572
Dollar/Dollar
Dollar/Norway NOK= 8.9810 9.0354 -0.60% +2.31% +9.0524 +8.9323
Euro/Norway EURNOK= 10.5658 10.6020 -0.34% +7.40% +10.6745 +10.5420
Dollar/Sweden SEK= 8.7373 8.7493 -0.05% -6.53% +8.7731 +8.7048
Euro/Sweden EURSEK= 10.2764 10.2812 -0.05% -1.84% +10.3038 +10.2669
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