FOREX-Risk currencies buoyed by cautious hopes pandemic is peaking

* Hopes of pandemic peak support risk-sensitive currencies
* Commodity currencies benefit from oil output cut hopes
* Euro dented after EU fails to agree on more policy steps
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano
TOKYO, April 9 (Reuters) - Risk-sensitive currencies climbed
on Thursday on budding optimism the coronavirus pandemic may be
peaking although the euro was dented by the European Union's
failure to agree on more support for their weakened economies.
The Australian dollar fetched $0.6233 AUD=D4 , trading near
its highest level since mid-March and extending its rally from
its 17-year trough of $0.5510 touched three weeks ago.
The euro stood at $1.086 EUR= , having slipped 0.35% on
Wednesday, after European Union finance ministers failed in
all-night talks to agree on more economic support for their
coronavirus-stricken economies. Two main sticking points were conditions for access to
emergency credit lines in the euro zones's bailout fund and the
notion of issuing joint debt by the bloc, so-called
"coronabonds".
The euro's drop overnight helped to lift the dollar index
=USD a tad to 100.120.
But the index is down 0.5% so far this week as safe-haven
flows to the U.S. currency eased on rising hopes much of Europe
and the United States could soon see themselves out of the worst
period of the COVID-19 pandemic.
"New York reported its biggest death toll while infections
hit the highest level in four days in Spain and three days in
Italy," said Tohru Sasaki, head of Japan market research at
JPMorgan. "All these are negative but forecasts both from
governments and experts that the peak could come within days are
leading markets not to focus on those details."
New York state on Wednesday reported the most coronavirus
cases in the world, overtaking Spain, according to a Reuters
tally. More focus is on the U.S. initial jobless claim data
USJOB=ECI due at 1230 GMT.
The average forecasts of economists stood at 5.25 million
after a total of nearly 10 million claims over the past two
weeks.
"Markets already know that the economy is being hit by
extraordinary shocks," said JPMorgan's Sasaki. "Even if the
number increases, it will probably surprise few people while a
better reading could enhance the perception that the worst may
be over and trigger a bigger market reaction."
On top of hopes of a peak in the epidemic, commodity-linked
currencies, including the Aussie, got an additional boost from
hopes that major oil producing countries could agree to cut
output at a video conference on Thursday.
Media reports suggested Russia would cut its output and
Algeria's energy minister said he expected a "fruitful" meeting
though there remained tensions between the world's top three
producers, the United States, Saudi Arabia and Russia.
The Canadian dollar CAD=D4 traded at C$1.4020 per U.S.
dollar, not far off this week's peak at C$1.3945. The Canadian
unit has been recovering from a four-year low of C$1.4669 hit on
March 20.
The yen stood at 108.85 yen per dollar JPY= and has been
trading in a narrowing range so far this week.