* EU deal cheered, although largely priced in
* Analysts say dollar set to struggle for now
* Commodity currencies soar as risk sentiment improves
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Updates to mid-afternoon, changes byline)
By Chuck Mikolajczak and Gertrude Chavez-Dreyfuss
NEW YORK, July 21 (Reuters) - The euro on Tuesday scaled to its highest against the U.S. dollar since
January 2019, after European Union countries reached an accord on a massive stimulus plan to revive their
economies that have been mired in a coronvirus-induced slump.
Sentiment rose on the heels of the EU deal and lifted commodity currencies, which tend to benefit in
times of increased risk appetite. The Australian dollar rose to a 15-month high against the greenback, the
New Zealand currency touched a six-month peak, and the Canadian dollar advanced to its strongest level in
six weeks.
The EU deal - a compromise on concerns that states considered to be frugal such as the Netherlands,
Austria and Sweden, had about aid for more their more profligate neighbors - was hailed as an important
signal of unity by Europe's leaders and a foundation for economic recovery but also revealed potential
fractures that could inhibit any future deals. an important fact they finally got around to doing it, they got everybody on board with it. It's
less than I certainly thought they would do so its effect on the euro is going to be limited," said Joseph
Trevisani, senior analyst at FXStreet.com.
Encouraging results from several COVID-19 vaccine trials on Monday also kept sentiment buoyant and
provided an additional boost to global stock markets. In afternoon trading, the euro rose 0.69% to $1.15275, after earlier hitting $1.154, EUR=EBS , the
highest level since Jan. 11, 2019.
Against a basket of major currencies, the dollar fell 0.64% to 95.123 =USD , the lowest since early
March.
ING analysts said they are looking for "more gains to $1.20 later this year" as dollar weakness kicks
in because the recovery fund agreement is significant enough "not to prompt investors to exit their long
euro positions," particularly against the dollar, where the outlook has darkened for the rest of the year.
The Australian dollar AUD=D3 was last up 1.83% at US$0.7146, also lifted after the central bank
offered few surprises in minutes from last month's meeting. AUD/
In a speech, Governor Philip Lowe said while he would prefer a cheaper Aussie dollar, its 27% recovery
from March lows was supported by fundamentals. The New Zealand dollar rose 1.08% to US$0.6645 NZD=D3 .
The Canadian dollar strengthened 0.72% to C$1.3436 per U.S. dollar CAD=D3 .
The dollar fell 0.45% versus the yen to 106.78 yen JPY=EBS .
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Currency bid prices at 2:55PM (1855 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1525 $1.1444 +0.71% +2.82% +1.1539 +1.1424
Dollar/Yen JPY= 106.7700 107.2400 -0.44% -1.92% +107.3600 +106.6900
Euro/Yen EURJPY= 123.09 122.78 +0.25% +0.93% +123.1600 +122.4800
Dollar/Swiss CHF= 0.9326 0.9387 -0.65% -3.64% +0.9399 +0.9322
Sterling/Dollar GBP= 1.2755 1.2660 +0.75% -3.80% +1.2767 +1.2651
Dollar/Canadian CAD= 1.3431 1.3533 -0.75% +3.43% +1.3537 +1.3424
Australian/Doll AUD= 0.7140 0.7013 +1.81% +1.69% +0.7143 +0.7011
ar
Euro/Swiss EURCHF= 1.0754 1.0745 +0.08% -0.90% +1.0758 +1.0723
Euro/Sterling EURGBP= 0.9037 0.9035 +0.02% +6.90% +0.9050 +0.9002
NZ NZD= 0.6640 0.6574 +1.00% -1.43% +0.6647 +0.6560
Dollar/Dollar
Dollar/Norway NOK= 9.0936 9.2276 -1.45% +3.59% +9.2325 +9.0825
Euro/Norway EURNOK= 10.4830 10.5664 -0.79% +6.56% +10.5796 +10.4658
Dollar/Sweden SEK= 8.8652 8.9506 -0.48% -5.16% +8.9808 +8.8596
Euro/Sweden EURSEK= 10.2203 10.2692 -0.48% -2.38% +10.2813 +10.2170
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Euro vs U.S. dollar https://tmsnrt.rs/30wWQJh
Potential allocation of EU recovery fund as share of GDP https://tmsnrt.rs/2OzVnME
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