* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds quote, U.S. stimulus talks, Canadian dollar, updates Brexit talks, prices)
By Karen Brettell
NEW YORK, Dec 10 (Reuters) - The euro rose on Thursday after the European Central Bank disappointed
some investors looking for a larger stimulus boost, while sterling fell as the prospect of a no-deal
Brexit appeared more likely.
The ECB expanded its debt purchase scheme and agreed to provide banks with even more ultra-cheap
liquidity as long as they keep passing the cash onto companies. However, "the European Central Bank did not present a big new bazooka," said Carsten Brzeski, global
head of macro at ING. It offered "a well-engineered extension of all well-known instruments to ensure that
the current level of monetary accommodation is extended until at least the spring of 2022, hoping for the
vaccine to have done its job by then."
The ECB also said it is monitoring the euro's exchange rate with regard to its possible implications
for the medium-term inflation outlook, after it last week hit a two-and-a-half year high against the
greenback.
Analysts and market participants are watching to see if global central banks indicate they may act to
stem the relative strength of their currencies as the greenback tumbles.
"It's the second major central bank to casually note exchange rate developments recently, underscoring
the sliding USD," said Mark McCormick, global head of FX strategy at TD Securities. "We don't think there
is too much the ECB can do to reverse market trends, though they can take some steam off the top."
The Bank of Canada on Wednesday attributed strength in the Canadian dollar to U.S. dollar's
broad-based decline. The euro EUR=EBS was last up 0.49% on the day at $1.2082. The greenback dipped 0.61% against the
loonie CAD=D3 to $1.2741 after earlier reaching $1.2708, the lowest since April 2018.
The greenback also weakened after data on Thursday showed the number of Americans filing first-time
claims for unemployment benefits increased more than expected last week as mounting COVID-19 infections
caused more business restrictions. Near-term U.S. fiscal stimulus appears unlikely after Democrat House Speaker Nancy Pelosi suggested
wrangling over a spending package and coronavirus aid could drag on through Christmas. Sterling slipped as market participants became more cautious about the risk of a no-deal Brexit.
British Prime Minister Boris Johnson said on Thursday there was "a strong possibility" Britain and the
EU would fail to strike a trade deal, but vowed to do whatever he could to avoid a tumultuous split in
three weeks. Bank of England Governor Andrew Bailey has said a no-deal Brexit would cause more lasting damage to
Britain's economy than the COVID-19 pandemic. Sterling GBP=D3 was last down 0.72% at $1.3305.
The British currency is struggling to get above technical resistance in the $1.35 area, and this is
the third time it has failed at this level since December 2019, said Tom Fitzpatrick, global head of
CitiFX Technicals.
The Australian dollar hit a two-and-a-half year high on growing optimism that global growth will
improve, and that the Reserve Bank of Australia is unlikely to loosen policy further after cutting rates
to a historic low of 0.1% in November.
"China's economy showing mounting signs of strength, that is boding better for a global recovery and I
think that's leading the market to unwind expectations of looser policy from down under," said Joe
Manimbo, senior market analyst at Western Union Business Solutions in Washington.
The Aussie AUD=D3 gained 1.26% to $0.7537.
It also bounced against the New Zealand dollar AUDNZD=D3 to one-month high of $1.0641, and is up
from a seven-and-a-half-month low of $1.0419 on Dec. 1.
========================================================
Currency bid prices at 3:30PM (2030 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $90.7590 91.0960 -0.36% +0.00% +91.1530 +90.6640
Euro/Dollar EUR=EBS $1.2141 $1.2082 +0.49% +8.30% +1.2159 +1.2073
Dollar/Yen JPY=D3 104.1750 104.2200 -0.03% -4.08% +104.5750 +104.1850
Euro/Yen EURJPY= 126.49 125.92 +0.45% +3.71% +126.7300 +125.8700
Dollar/Swiss CHF=EBS 0.8868 0.8896 -0.29% -8.34% +0.8901 +0.8853
Sterling/Dollar GBP=D3 1.3305 1.3403 -0.72% +0.33% +1.3409 +1.3245
Dollar/Canadian CAD=D3 1.2741 1.2820 -0.61% -1.92% +1.2828 +1.2708
Aussie/Dollar AUD=D3 0.7537 0.7442 +1.26% +7.40% +0.7538 +0.7426
Euro/Swiss EURCHF= 1.0765 1.0746 +0.18% -0.80% +1.0769 +1.0739
Euro/Sterling EURGBP= 0.9123 0.9015 +1.20% +7.91% +0.9142 +0.9010
NZ NZD=D3 0.7094 0.7022 +1.03% +5.42% +0.7094 +0.7013
Dollar/Dollar
Dollar/Norway NOK=D3 8.7660 8.8325 -0.89% -0.21% +8.8475 +8.7525
Euro/Norway EURNOK= 10.6457 10.6890 -0.41% +8.21% +10.7130 +10.6170
Dollar/Sweden SEK= 8.4382 8.4721 +0.02% -9.73% +8.5004 +8.4271
Euro/Sweden EURSEK= 10.2460 10.2440 +0.02% -2.13% +10.2767 +10.2297